Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. patel and sons inc. uses a standard cost system to

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to...

90.2K

Verified Solution

Question

Accounting

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 52,200 machine hours per year, which represents 26,100 units of output. Annual budgeted fixed factory overhead costs are $261,000 and the budgeted variable factory overhead cost rate is $2.70 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,700 units, which took 41,200 machine hours. Actual fixed factory overhead costs for the year amounted to $253,800 while the actual variable overhead cost per unit was $2.60.

Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

a. Total overhead Variance b. Total flexible-budget Variance c. Production Volume Variance

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

Physics
1.2K views

Given this information what equation would I use to find frequency I already know hkw...

Medical Sciences
1.2K views

Answer each of the following briefly: a) Compare the digestion and absorption of carbohydrates, proteins and fats. b)...

Biology
1.2K views

10 points Save Antwer Tyra and Sam have been studying genetic disorders specifically sickle cell...

Biology
1.2K views

7 An insertion or deletion can result in a frameshift mutation To demonstrate this complete...

Geometry
1.2K views

What is the area of the figure below 10 m Select one O a 72...

Statistics
1.2K views

12 pts I work for a pharmaceutical company and I want to show that our...

Calculus
1.2K views

a Find the values of p for which the following integral converges Enter your answer...

Calculus
1.2K views

Rewrite using only positive rational exponents 5 45 2 54 6a b

Accounting
1.2K views

This table shows the U.S. federal income tax rates from 2014.(Source: Internal Revenue Service) ...

Accounting
1.2K views

For each of the following sustainability initiatives, indicate whether it will impact social (S), environmental...

Finance
1.2K views

(Complex present value) How much do you have to deposit today so that beginning 14...

Finance
1.2K views

Given the following data on two loan portfolios, A and B, estimate the required regulatory...