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The Joyner Corporation originally budgeted for $360,000 of fixed ove

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The Joyner Corporation originally budgeted for $360,000 of
fixed overhead. Production was budgeted to be 12,000
units. The standard hours for production were 5 hours per
unit. The variable overhead rate was $3 per hour. Actual
fixed overhead was $360,000 and actual variable overhead
was $170,000. Actual production was 11,700 units.
Compute the factory overhead volume variance.
Question 25 options:
9,000F
9,000U
5,500F
5,500U
9,000F
9,000U
5,500F
5,500U
Solution
Correct Option is
9,000 U
Factory Overhead Volume variance = Fixed Overhead Cost
Absorbed - Budgeted Fixed Overhead Cost
Absorption Rate Per Unit: 360,000 / 12,000 = $30 Per Unit
Budgeted Overhead Absorption = 360,000 , Actual
Overhead Absorbed = 11,700 x 30 = $351,000

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The Joyner Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead volume variance. Question 25 options: 9,000F 9,000U 5,500F 5,500U 9,000F 9,000U 5,500F 5,500U Solution Correct Option is 9,000 U Factory Overhead Volume variance = Fixed Overhead Cost Absorbed - Budgeted Fixed Overhead Cost Absorption ...
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