Question

E BusinessCourse Return to course My Subscriptions Savannah Baran Partially corres Markes for this submission 0.98/1.00 eBook Print Question 5 Partially correct Mark 0,50 out of 1.00 P Flag ques Fixed Overhead Variances Petra Company uses standard costs for cost control and internal reporting Fixed costs are budgeted at $44,000 per month at a normal operating level of 10,000 units of production output. During October, actual fixed costs were $50,000 and actual production output was 12.000 units a. Determine the fixed overhead budget variance. $ 0 XU. b. Assume that the company applied fixed overhead to production on a per-unit basis. Determine the fixed overhead volume variance $ 0 Check Partly EFTER Marks for the submission: 0.50/1.00

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A B E F C C D Answer - Part a) Fixed overhead Budget Variance = actual cost-budgeted cost = 50000 -44000 - = $ 6000 Unfavourable • Thus the correct answer is $ 6000 U 1 Part b) 2 Fixed overhead volume variance 3 = Budgeted cost-Recovered overheads 4 = 44000-(12000*(44000/10000)) 5 = $ 8800 Favourable 7 Thus the correct answer is $ 8800 F