Answered Essay: Path p Ques The following information comes from the records of Magno Go for the current period a Compute the overhead controllable and v

Compute the overhead controllable and volume variances in each case state weather the variance is favorable or unfavorable
Path p Ques The following information comes from the records of Magno Go for the current period a Compute the overhead controllable and volume variances In each case, state whether the variance is favorable or unfavorable Actual çosts and quantties Direct labor hours used Direct labor rate per hour Factory overhead 25 000 units were produced during the period 50,660 hours $16 $210,500 Standard costs and quantties per unit Direct Labor 2 hours @ $17 per hour Factory overhead (based on budgeted production of 24,500 units) Variable overhead $2.15/direct labor hour Fixed overhead $2 02/direct labor hour ㄒㄒㄧ·T Paragraph ▼ Arial 3(12pt) ▼ :-. E . T . , . 순 、 0左。Mashup. . ㅖ “ ⓒl@↓囲ㄧ困兩糊霝11疆圍□HI m.css Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Path p Ques The following information comes from the records of Magno Go for the current period a Compute the overhead controllable and volume variances In each case, state whether the variance is favorable or unfavorable Actual çosts and quantties Direct labor hours used Direct labor rate per hour Factory overhead 25 000 units were produced during the period 50,660 hours $16 $210,500 Standard costs and quantties per unit Direct Labor 2 hours @ $17 per hour Factory overhead (based on budgeted production of 24,500 units) Variable overhead $2.15/direct labor hour Fixed overhead $2 02/direct labor hour ㄒㄒㄧ·T Paragraph ▼ Arial ‘3(12pt) ▼ :-. E . T . , . 순 、 0左。Mashup. . ㅖ “ ⓒl@↓囲ㄧ困兩糊霝11疆圍□HI m.css Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Expert Answer

 

Overhead controllable variance

Actual factory overheads 210,500

Less Budgeted

Fixed Overhead 24500 * 2.02 49490

Variable Overhead 24500 * 2.15 52675

102,165 Unfavorable

2. The overhead volume variance consists of fixed expense only

Actual hours used 50660

Standard hours 24500 * 2 49000

1660

Volume variance = 1660 * 2.02 = 3353 Unfavorable

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