Calculating factory overhead
The normal capacity of a factory is 10,000 units per month. Cost and production data follow:
Standard application rate for fixed overhead. . . . . . . . . . . . . $1.00 per unit
Standard application rate for variable overhead . . . . . . . . . $2.00 per unit
Production–Month 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,500 units
Production–Month 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000 units
Actual factory overhead–Month 1. . . . . . . . . . . . . . . . . . . . . . . . . $ 30,500
Actual factory overhead–Month 2. . . . . . . . . . . . . . . . . . . . . . . . . $ 32,250
Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.