question archive Computation of fixed overhead volume variance: Fixed overhead volume variance = Fixed overhead applied rate * (denominator machine hours - standard machine hours allowed) = (budgeted fixed overhead cost/denominator hours)*(15,000 hours - 12,000 hours) = ($45,000/ 15,000 hours)*(15,000 hours - 12,000 hours) = $9,000 (unfavorable)

Computation of fixed overhead volume variance: Fixed overhead volume variance = Fixed overhead applied rate * (denominator machine hours - standard machine hours allowed) = (budgeted fixed overhead cost/denominator hours)*(15,000 hours - 12,000 hours) = ($45,000/ 15,000 hours)*(15,000 hours - 12,000 hours) = $9,000 (unfavorable)

Subject:AccountingPrice: Bought3

Computation of fixed overhead volume variance:

Fixed overhead volume variance = Fixed overhead applied rate * (denominator machine hours - standard machine hours allowed)

= (budgeted fixed overhead cost/denominator hours)*(15,000 hours - 12,000 hours)

= ($45,000/ 15,000 hours)*(15,000 hours - 12,000 hours)

= $9,000 (unfavorable)

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