Answer:
$10,000 Unfavorable
Explanation:
Actual Fixed Overhead = $ 32,000
Budgeted Fixed Overhead = $ 22,000
Fixed Overhead variance = Actual fixed overhead – Budgeted fixed overhead
= $32,000 - $22,000
= $10,000 Unfavorable
This variance is unfavorable because the company spent more than it planned (budgeted)
Answer:
Total Fixed Overhead Variance= 4800 + (10,000)= $ 5200 Unfavorable
Explanation:
Actual fixed overhead $ 32,000
Budgeted fixed overhead $ 22,000
Standard overhead allocation rate $ 8
Standard direct labor hours per unit 2 DLHr
Actual output 2,300 units
Fixed Efficiency Variance
Actual Fixed Overhead = $ 32,000
Standard Hours Allowed * Fixed Overhead rate= 4600 *8= $ 36900
Fixed Efficiency Variance = $ 4800 Favorable
Idle Capacity Variance
Budgeted Fixed Overhead = $22000
Actual Fixed Overhead = $ 32000
Idle Capacity Variance = $ 10,000 Unfavorable
Total Fixed Overhead Variance= 4800 + (10,000)= $ 5200 Unfavorable
