calculating factory overhead the standard capacity of a factory is 8 000 units per m 729527
Calculating factory overhead
The standard capacity of a factory is 8,000 units per month. Cost and production data follow:
|
Standard application rate for fixed overhead |
$0.50 per unit |
|
Standard application rate for variable overhead |
$1.50 per unit |
|
Production—Month 1 |
7,400 units |
|
Production—Month 2 |
8,200 units |
|
Actual factory overhead—Month 1 |
$15,100 |
|
Actual factory overhead—Month 2 |
$17,200 |
Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month.