Ask Question
7 June, 09:09

The following data are given for Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard price per pound $2.00 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,800 Actual price paid for materials $23,000 Labor: Standard hourly labor rate $14.00 per hour Standard hours allowed per completed unit 4.5 Actual labor hours worked 4,560 Actual total labor costs $62,928 Overhead: Actual and budgeted fixed overhead $27,000 Standard variable overhead rate $3.50 per standard direct labor hour Actual variable overhead costs $15,500 Overhead is applied on standard labor hours. The fixed factory overhead volume variance is a.$65 unfavorable> b.$540 unfavorable c.$65favorable d.$540 favorable

+2
Answers (1)
  1. 7 June, 11:44
    0
    Volume overhead $ 540 unfavorable

    Explanation:

    The volume overhead is the difference between the budgeted units and actual units multiplied by the cost unit

    Fixed over cost per unit = budgeted cost/Budgeted unit

    = $27,000/1000 units

    = $27

    Volume variance

    Units

    Budgeted unit 1000

    Actual unit 980

    Difference 20 unfavorable

    Standard fixed overhead per unit * $27

    Volume overhead 540 unfavorable
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The following data are given for Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard price per ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers