Calculating the standard labor hours

Response to the following problem:

The following data is given for the Bahia Company:

Budgeted production 1,000 units

Actual production 980 units


Standard price per pound $2.00

Standard pounds per completed unit 12

Actual pounds purchased and used in production 11,800

Actual price paid for materials $23,000


Standard hourly labor rate $14 per hour

Standard hours allowed per completed unit 4.5

Actual labor hours worked 4,560

Actual total labor costs $62,928


Actual and budgeted fixed overhead $27,000

Standard variable overhead rate $3.50 per standard labor hour

Actual variable overhead costs $15,500

Overhead is applied on standard labor hours. The factory overhead volume variance is ?

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Cost Accounting: Calculating the standard labor hours
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