I-17.

03

In the boxed areas provided, enter budgeted fixed factory overhead, actual fixed factory overhead, standard
hours (or other application base), and the standard fixed overhead allocation rate. Fixed factory overhead
variances will be automatically calculated, along with related journal entries. The initial values that are
already entered correspond to values used in the example in the textbook. Try alternative values and closely
consider and evaluate the changes to the variance calculations.

Enter the budgeted fixed factory overhead >>>> $ 72,000.00

Enter the actual amount spent on fixed factory overhead >>>> $ 70,000.00

Enter standard hours (or other application base) to achieve output >>>> 10,200

Enter the standard fixed overhead allocation rate >>>> $ 6.00

Actual cost Standard cost

10,200

Total
6.00
variance

$ 70,000.00 $ (8,800.00) $ 61,200.00

Spending Budgeted Volume

Variance Amount Variance
 I-17.03

$ 2,000.00 $ 72,000 $ (10,800.00)

Work in Process Inventory 61,200.00

Fixed Overhead Volume Variance 10,800.00
Fixed Overhead Spending Variance 2,000.00
Factory Overhead 70,000.00

To increase work in process for the standard fixed overhead and

record the related variances