World Company expects to operate at 80% of its productive
capacity of 68,750 units per month. At this planned level, the
company expects to use 30,800 standard hours of direct labor.
Overhead is allocated to products using a predetermined standard
rate of 0.560 direct labor hours per unit. At the 80% capacity
level, the total budgeted cost includes $73,920 fixed overhead cost
and $397,320 variable overhead cost. In the current month, the
company incurred $487,000 actual overhead and 27,800 actual labor
hours while producing 54,000 units.
(1) Compute the overhead volume variance.
(2) Compute the overhead controllable
variance.
World Company expects to operate at 80% of its productive capacity of 68,750 units per month....
World Company expects to operate at 80% of its productive capacity of 70,000 units per month. At this planned level, the company expects to use 25,200 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.450 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $57,960 fixed overhead cost and $322,560 variable overhead cost. In the current month, the company incurred $386,000 actual overhead and 22,200 actual...
World Company expects to operate at 80% of its productive capacity of 68,750 units per month. At this planned level, the company expects to use 31,900 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.580 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $70,180 fixed overhead cost and $405,130 variable overhead cost. In the current month, the company incurred $473,000 actual overhead and 28,900 actual...
World Company expects to operate at 80 % of its productive capacity of 55,000 units per month. At this planned level, the company expects to use 23,100 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.525 direct labor hours per unit At the 80% capacity level, the total budgeted cost includes $60.060 fixed overhead cost and $267,960 variable overhead cost. In the current month, the company incurred $342,000 actual overhead and 20100...
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual...
World Company expects to operate at 80% of its productive capacity of 56,250 units per month. At this planned level, the company expects to use 27,900 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.620 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $64,170 fixed overhead cost and $315,270 variable overhead cost. In the current month, the company incurred $340,000 actual overhead and 24,900 actual...
World Company expects to operate at 80% of its productive capacity of 70,000 units per month. At this planned level, the company expects to use 25,200 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.450 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $57,960 fixed overhead cost and $322.560 variable overhead cost. In the current month, the company incurred $386,000 actual overhead and 22,200 actual...
World Company expects to operate at 80% of its productive capacity of 72,500 units per month. At this planned level, the company expects to use 31,900 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.550 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $79,750 fixed overhead cost and $414,700 variable overhead cost. In the current month, the company incurred $488,000 actual overhead and 28,900 actual...
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 24,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.610 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $53,680 fixed overhead cost and $273,280 variable overhead cost. In the current month, the company incurred $320,000 actual overhead and 21,400 actual...
World Company expects to operate at 70% of its productive capacity of 20,000 units per month. At this planned level, the company expects to use 11,550 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.825 direct labor hour per unit. At the 70% capacity level, the total budgeted cost includes $23,100 fixed overhead cost and $138,600 variable overhead cost. In the current month, the company incurred $135,860 actual overhead and 7180 actual...
World Company expects to operate at 70% of its productive capacity of 20,000 units per month. At this planned level, the company expects to use 11,550 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.825 direct labor hour per unit. At the 70% capacity level, the total budgeted cost includes $23,100 fixed overhead cost and $138,600 variable overhead cost. In the current month, the company incurred $135,860 actual overhead and 7180 actual...