The Following Information Relates to Manufacturing Overhead for the Chapman

question 144

Essay

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, and c the total factory overhead cost variance.

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Definitions:

Representative Subset

A portion of a larger group or data set that accurately reflects the characteristics or distribution of the whole.

Entire Group

Refers to the totality of members within a specified set or collection without exception.

Random Sample

A sample selected from a larger population in such a way that each member has an equal chance of being included, enhancing representativeness.

Laboratory Experiments

Controlled experiments conducted in a lab setting where variables can be manipulated and outcomes can be measured precisely.