Solve the following problems:
1) Heara Ltd manufactures metal sheets, and uses the weighted average method process costing. On 1 May the Rolling Department had 3000 units work in progress, which were 50 per cent completed as to conversion costs. During May 8000units were completed and transferred out. The remaining work in progress on 30 May was 2000 units, at 50 per cent complete in terms of conversion rate. What is the equivalent unit of conversion?
2) Carvell Cabinates set the following standard cost per unit for 2008:
Fixed overhead (4 machine hours at $10) $40
Variable overhead (4 machine hours at $8) $32
The standards were set based on a capacity of 20,000 machine hours.
During the year 5,100 units were produced.
Fixed overhead $205 000
Variable overhead $165 750
Machine hours worked $19 800
What was Carvell fixed overhead volume variance?