Hurley, Inc. manufactures widgets for distribution. The standard costs for the manufacture of widgets follow:
Budgeted factory overhead was $320,000. Overhead applied is based on widgets produced. The company estimated that 5,000 widgets would be produced; however, only 4,800 were produced.
Instructions
Calculate the following amounts.
1. Rate at which total factory overhead is applied
2. Materials price variance
3. Total materials variance
4. Overhead volume variance
5. Overhead controllable variance

Question

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The Answer of Hurley, Inc. manufactures widgets for distribution. The standard costs for the manufacture of widgets follow:
Budgeted factory overhead was $320,000. Overhead applied is based on widgets produced. The company estimated that 5,000 widgets would be produced; however, only 4,800 were produced.
Instructions
Calculate the following amounts.
1. Rate at which total factory overhead is applied
2. Materials price variance
3. Total materials variance
4. Overhead volume variance
5. Overhead controllable variance