The following information relates to Leonard Manufacturing's overhead costs for the month:

Leonard allocates manufacturing overhead to production based on standard direct labor hours.
Leonard reported the following actual results for last month: actual variable overhead,$14,500;actual fixed overhead,$5,400;actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the fixed overhead cost variance.

Question

The following information relates to Leonard Manufacturing's overhead costs for the month:
  
Leonard allocates manufacturing overhead to production based on standard direct labor hours.
Leonard reported the following actual results for last month: actual variable overhead,$14,500;actual fixed overhead,$5,400;actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the fixed overhead cost variance.

Quizplus · Accepted Answer

The Answer of The following information relates to Leonard Manufacturing's overhead costs for the month:
  
Leonard allocates manufacturing overhead to production based on standard direct labor hours.
Leonard reported the following actual results for last month: actual variable overhead,$14,500;actual fixed overhead,$5,400;actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the fixed overhead cost variance.

The Following Information Relates to Leonard Manufacturing's Overhead Costs for the Month