Chojnowski Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$82,450 Budgeted fixed manufacturing overhead 325,975 Total budgeted manufacturing overhead$ 408,425 Budgeted production (a) 25,000unitsStandard hours per unit (b) 1.70labor-hoursBudgeted hours (a) × (b) 42,500labor-hours Applying Overhead: Actual production (a) 20,000unitsStandard hours per unit (b) 1.70labor-hoursStandard hours allowed for the actual production (a) ×
(b) 34,000labor-hours Actual Overhead and Hours: Actual variable manufacturing overhead$74,812 Actual fixed manufacturing overhead 312,975 Total actual manufacturing overhead$ 387,787 Actual hours 31,700labor-hoursThe fixed overhead volume variance is: (Round your intermediate calculations to 2 decimal places.)
A. $52,195 F
B. $65,195 F
C. $52,195 U
D. $65,195 U
Answer: D
You might also like to view...
The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities. During the _____ cash outflow exceeds cash inflow from operations because operations are not yet earning profits while the firm must invest in accounts receivable and inventories. Investing activities result in a net
cash outflow to build productive capacity. Firms must rely on external financing during this phase to overcome the negative cash flow from operations and investing. a. introduction phase b. growth phase c. mature phase d. late maturity phase e. decline phase
Effective speaking skills are important to recruiters
Indicate whether the statement is true or false
The same project managed in the same fashion may succeed in one organization but fail in another
Indicate whether the statement is true or false
One of the disadvantages of transit cards is that they can be depressing and intrusive.
Answer the following statement true (T) or false (F)