I had posted this question earlier. Since there was no response from anyone I am posting this thread again.
Please help
Ardmore Enterprises uses a standard cost system in its small appliance division. The standard cost of manufacturing one unit of Zeb is as follows.
Materials – 60 pounds at $1.50 per pond $90
Labor – 3 hours at $12 per hour 36
Factory overhead – 3 hours at $ 8 per hour 24
Total standard cost per unit $150
The budgeted variable factory overhead rate is $3 per labor hour, and the budgeted fixed factory overhead is $27,000 per month. During May,
Materials – 58 pounds at $1.65 per pond $95.7
Labor – 3.1 hours at $12 per hour 37.2
Factory overhead – $39930 per 1650 units 24.20
Total standard cost per unit $157.10
What is flexible budget overhead variance for May ?
Correct Answer is $1,920 favorable.
I am getting the answer 330 unfavourable arrived as under
Actual F. oh : 39930
Actual qty * std. rate = 1650*24 = 39600
Difference of above two = 330 unvavourable
Please anyone help me solve this problem to arrive at correct answer of 1920 favourable.