Ask Question
14 June, 04:50

Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3400 units and actual fixed manufacturing overhead cost were $23000. What was nexus fixed manufacturing overhead volume variance in May?

+1
Answers (1)
  1. 14 June, 05:15
    0
    The nexus fixed manufacturing overhead volume variance in May was = 14,700 Unfavorable

    Explanation:

    Fixed manufacturing overhead volume variance

    = Absorbed rate * (Actual Labor Hours - budgeted labor hours

    = 8.40 * (3400*2.5 - 2700*2.5)

    = 8.40 * (8500-6750)

    = 14,700 Unfavorable
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers