The Dogwood Technology Company managerial accountant computes the May total variance report.The budgeted fixed overhead was $48,580 and the standard fixed overhead cost allocated to production was $45,600.The actual fixed overhead totaled $47,930.Compute the fixed overhead budget variance and the fixed overhead volume variance.

Question

Quizplus · Accepted Answer

B)
Actual fixed overhead - budgeted fixed overhead = fixed overhead budget variance:
($47,930 - $48,580)= $650 U
Budgeted fixed overhead - standard fixed overhead cost allocated to production = fixed overhead volume variance
($48,580 - $45,600)= $2,980 F

The Dogwood Technology Company Managerial Accountant Computes the May Total