Question

The managerial accountant at Space Right Office Cubicles calculates fixed overhead variances to complete the August report. The actual fixed overhead cost in the month of August was and the budgeted fixed overhead cost was . The standard hours in August were and the standard rate per machinehour was . Calculate the standard fixed overhead cost allocated to​ production, the fixed overhead budget​ variance, and the fixed overhead volume variance. A. ​; ​F; U B. ​; ​F; U C. ​; ​F; U D. ​; ​F; U

Answer 1

Answer: d. $36,400; $1700 F; $500 U

Step-by-step explanation:

1. Standard fixed overhead cost allocated to​ production

= Standard Hours * Standard rate per machine hour

= 2,600 * 14

= $36,400

2. Fixed overhead budget​ variance

= Budget overhead cost - Actual overhead cost

= 36,900 - 35,200

= $1,700 favorable

3. Fixed Overhead Volume Variance

= Standard fixed overhead cost - Budgeted overhead

= 36,400 - 36,900

= -$500

= $500 Unfavorable