Question

The Dogwood Technology Company managerial accountant computes the May total variance report. The budgeted fixed overhead was $ 47,420 and the standard fixed overhead cost allocated to production was $ 47,220. The actual fixed overhead totaled $ 46,670. Compute the fixed overhead budget variance and the fixed overhead volume variance.

Answer 1

$750 favorable ; $200 unfavorable

Step-by-step explanation:

The computations are shown below:

For fixed overhead budget variance:

= Budgeted fixed overhead - actual fixed overhead

= $47,420 - $46,670

= $750 favorable

For fixed overhead volume variance:

= Budgeted fixed overhead - standard fixed overhead cost allocated to production

= $47,420 - $47,220

= $200 unfavorable

Hence we consider all the given information