Rhodes Corporation manufactures a product with the following standard costs: Standards are based on normal monthly production involving 2,000 direct labor hours (500 units of output).
The following information pertains to the month of July:
a.Compute the budgeted fixed overhead.
b.Assuming Rhodes uses the two-variance method of analyzing factory overhead,computer the following variances for the month of July,indicating whether each variance is favorable or unfavorable:
(1)
Factory overhead flexible-budget variance
(2)
Factory overhead production-volume variance

Question

Rhodes Corporation manufactures a product with the following standard costs:  Standards are based on normal monthly production involving 2,000 direct labor hours (500 units of output).
The following information pertains to the month of July:  
a.Compute the budgeted fixed overhead.
b.Assuming Rhodes uses the two-variance method of analyzing factory overhead,computer the following variances for the month of July,indicating whether each variance is favorable or unfavorable:
(1)
Factory overhead flexible-budget variance
(2)
Factory overhead production-volume variance

Quizplus · Accepted Answer

The Answer of Rhodes Corporation manufactures a product with the following standard costs:  Standards are based on normal monthly production involving 2,000 direct labor hours (500 units of output).
The following information pertains to the month of July:  
a.Compute the budgeted fixed overhead.
b.Assuming Rhodes uses the two-variance method of analyzing factory overhead,computer the following variances for the month of July,indicating whether each variance is favorable or unfavorable:
(1)
Factory overhead flexible-budget variance
(2)
Factory overhead production-volume variance

Rhodes Corporation Manufactures a Product with the Following Standard Costs