If the company is using a standard costing system, what is the company's overall fixed overhead volume variance?
6. A company has the following information for Job Alpha during July:
Units produced: 1,000
Actual materials used (and purchased): 5,250 lbs.
Actual materials cost: $4.80 per lb.
Actual labor hours incurred: 2,552
Actual labor rate: $21.25 per hour
Work in process, July 1: $$
Work in process, July 31: $$
The company applies manufacturing overhead to jobs based on direct labor hours.
Additional information for the company in July is as follows:
Total estimated labor hours: 45,232
Standard materials per unit: 5.00 lbs.
Standard materials cost: $5.00 per lb.
Standard labor hours per unit: 2.75 hours
Standard labor rate: $22.00 per hour
Standard variable overhead: $3.00 per labor hour
Standard fixed overhead*: $5.00 per labor hour
*based on 45,232 labor hours
Actual total output in units: 16,500
Actual total labor hours: 43,725
Actual variable overhead: $2.90 per labor hour
Actual total fixed overhead: $220,000