a. Compute the controllable variance.b. Compute the volume variance Q1. EVERYTHING WILL BE OK! Corp uses standard costing system. The standard cost of manufacturing one unitof product X is as follows:50 KilosMaterialsLabor6 HoursFactory overhead 8 Hours60 / kilo50 per hour30 per hourBudgeted fixed factory overhead is P 20,000 and normal capacity of the company is 400 units.The actual costs incurred during the month were:Materials used is 16,000 kilos at P 62 per kiloLabor --1,900 hours at P 44 per hourOverhead:Variable overhead is P 38,750Fixed overhead is P 40,200Units Produced: 350 units

Variance is the difference between the estimated or budgeted cost of production and the actual cost…

Answered: a. Compute the controllable variance.…

Business

Accounting

a. Compute the controllable variance. b. Compute the volume variance

Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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Question

a. Compute the controllable variance.
b. Compute the volume variance

Q1. EVERYTHING WILL BE OK! Corp uses standard costing system. The standard cost of manufacturing one unit
of product X is as follows:
50 Kilos
Materials
Labor
6 Hours
Factory overhead 8 Hours
60 / kilo
50 per hour
30 per hour
Budgeted fixed factory overhead is P 20,000 and normal capacity of the company is 400 units.
The actual costs incurred during the month were:
Materials used is 16,000 kilos at P 62 per kilo
Labor --1,900 hours at P 44 per hour
Overhead:
Variable overhead is P 38,750
Fixed overhead is P 40,200
Units Produced: 350 units

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