Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. factory overhead cost variances blumen textiles co

Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 33,000 hours...

50.1K

Verified Solution

Question

Accounting

Factory Overhead Cost Variances

Blumen Textiles Corporation began April with a budget for 33,000 hours of production in the Weaving Department. The department has a full capacity of 44,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:

Variable overhead $122,100
Fixed overhead 83,600
Total $205,700

The actual factory overhead was $208,200 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 34,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.

a. Variable factory overhead controllable variance: $ Favorable

b. Fixed factory overhead volume variance: $ Unfavorable

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students