Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 43,000 hours of production in the Weaving Department. The department has a full capacity of 57,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead Fixed overhead Total $107,500 74,100 $181,600 The actual factory overhead was $183,800 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 45,000 hours. 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. Determine the variable factory overhead controllable variance. $ b. Determine the fixed factory overhead volume variance. $
Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 43,000 hours of production in the Weaving Department. The department has a full capacity of 57,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead Fixed overhead Total $107,500 74,100 $181,600 The actual factory overhead was $183,800 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 45,000 hours. 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. Determine the variable factory overhead controllable variance. $ b. Determine the fixed factory overhead volume variance. $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 16E: Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Factory Overhead Cost Variances
Blumen Textiles Corporation began April with a budget for 43,000 hours of production in the Weaving Department. The department
has a full capacity of 57,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning
of April was as follows:
Variable overhead
Fixed overhead
Total
$107,500
74,100
$181,600
The actual factory overhead was $183,800 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving
Department had standard hours at actual production volume of 45,000 hours. 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. Determine the variable factory overhead controllable variance.
$
b. Determine the fixed factory overhead volume variance.
$
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