What is the expected capacity variance

Reference no: EM131956251

Problem

Patton Corp. uses a standard cost system to account for the costs of its one products. Budgeted fixed overhead is $172,000, budgeted production is 4,000 per month, and practical capacity is 5,000 units. During November, Patton produced 3,900 units. Fixed overhead incurred totaled $165,420.

Assume Patton calculates its fixed overhead rate based on budgeted production.

a. What is the expected (planned) capacity variance?

b. What is the unexpected (unplanned) capacity variance?

Reference no: EM131956251

Questions Cloud

What is the minimum number of cans : What is the minimum number of cans that the company has to sell annually to justify self-production of cans? (Hint: start by guessing that annual production).

What is the entropy changes : What is the entropy changes, delta S (in units of J/K) when Argon gas (Ar), at 1.00 atm in a 0.5 L container is allowed to expand to 1 L

Impactful topic of managing growth : Discuss and reflect 2 the interesting and impactful topic of managing growth and what are comment on lessons of good and bad growth

Find what annual rate did the buyer earn on purchase : A coin that was featured in a famous novel sold at auction in 2014 for $6,581,000. The coin had a face value of $10 when it was issued in 1791.

What is the expected capacity variance : Patton Corp. uses a standard cost system to account for the costs of its one products. What is the expected (planned) capacity variance?

What is the molarity of fluoride in the original : After the addition of 0.1001 M fluoride the potential drops to 35.7 mV. What is the molarity of fluoride in the original, undiluted, unknown?

Find what is the minimum price stacy should accept : On the basis of the current value of the business, what is the minimum price Stacy should accept?

We can cause a shift toward reactants : Which of the following is incorrect with regard to the reaction below? A(g) ? B (g) ?H

Examine should the firm purchase the new machine : Coiner Clothes is contemplating the replacement of one of its knitting machines with a newer, and more efficient one. The old machine has a book value.

User Account

All Pages