The Following Information Relates to Manufacturing Overhead for the Chapman

question 105

Short Answer

The following information relates to manufacturing overhead for the Chapman Company:
Standards:
Total fixed factory overhead - $450,000
Estimated production - 25,000 units (100% of normal capacity)
Overhead rates are based on machine hours
Standard hours allowed per unit produced - 2
Fixed overhead rate - $9.00 per machine hour
Variable overhead rate - $3.50 per hour
Actual: Fixed factory overhead - $450,000
Production - 24,000 units
Variable overhead - $170,000
Compute:
(a) the fixed factory overhead volume variance
(b) the variable factory overhead controllable variance
(c) the total factory overhead cost variance.

---

Definitions:

Microvilli

Extensive tiny projections on the surface of some cells that increase the surface area for absorption or secretion.

Renal Artery

The artery that supplies blood to the kidneys, essential for the filtration and regulation of electrolyte levels in the blood.

Ureter

A pair of tubes that carry urine from the kidneys to the bladder, playing a crucial role in the urinary system of mammals, including humans.

Urethra

A tube that conveys urine from the urinary bladder to the outside of the body in both sexes, and also conveys semen in males.