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Cheshire, Inc

question 73

Essay

Cheshire, Inc. allocates fixed overhead at a rate of $18 per direct labor hour. This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units. During May, Cheshire produced 5,500 units. Budgeted fixed overhead is $66,000, and overhead incurred was $67,000.
Required:
Determine the volume variance for May.

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Definitions:

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The range of goods and merchandise that a retailer has on hand and available for sale to customers.

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A legal document that outlines the rights, responsibilities, and other operational details among the partners in a business partnership.

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A hypothetical or specific business focused on providing landscaping services, possibly including design, maintenance, and gardening.

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A process of improving and increasing capabilities of staff through access to education and training opportunities in the workplace, through outside organization, or through watching others perform the job.

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