Walthaus Corporation's standard cost sheet is as follows:
Direct material 4 feet at $5....
Business, 30.05.2020 16:57 isaiah1027
Walthaus Corporation's standard cost sheet is as follows:
Direct material 4 feet at $5.00 per foot
Direct labor 3 hours at $10.00 per hour
Variable overhead 3 hours at $2.00 per hour
Fixed overhead 3 hours at $1.00 per hour
Additional information:
Actual results: purchased 30,000 lbs of material at $5.25 per lb. (there were no beginning or ending material inventories); direct labor cost incurred was 26,000 hours at $9.75 per hour; actual variable overhead incurred, $50,000; and actual fixed overhead incurred $43,000.
Overhead is applied to work-in-process on the basis of direct labor hours.
The company produced 8,000 units of product during the period.
The number of estimated hours for computing the fixed overhead application rate totaled 45,000 hours.
What are the fixed overhead price and production volume variances?
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