Question

During the year a factory produced 225,000 units. At this activity level factory overhead cost were $ 1,100,000.

Before the start of the year accountant of the factory estimated annual activity level as 250,000 units and factory overhead as $ 1,250,000. Thus factory overhead applied rate was $5 per unit. 60% of factory overhead applied rate is composed of variable cost.

Required: (1). Budgeted fixed factory overhead.

(2). Under or over-applied factory overhead.

(3). Volume variance.

(4). Budget variance.

Answer 1

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Answer 2

Answer:

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