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 $56,400 and the budgeted fixed overhead cost was $58,100.The standard hours in August were 3,200 and the standard rate per machine-hour was $18.Calculate the standard fixed overhead cost allocated to production,the fixed overhead budget variance,and the fixed overhead volume variance.

Question

Quizplus · Accepted Answer

C)
Standard hour × standard rate = standard fixed overhead cost allocated to production:
(3,200 hours × $18)= $57,600
Actual fixed overhead - budgeted fixed overhead = fixed overhead budget variance:
($56,400 - $58,100)= $1,700 U
Budgeted fixed overhead - standard fixed overhead cost allocated to production = fixed overhead volume variance:
($58,100 - $57,600)= $500 F

The Managerial Accountant at Space Right Office Cubicles Calculates Fixed