Denominator level of activity................................................. 1
ID: 2375078 • Letter: D
Question
Denominator level of activity................................................. 1,600 machine-hours Budgeted fixed manufacturing overhead costs.................$42,400 Fixed portion of the predetermined overhead rate............$26.50 per machine-hour Actual level of activity...............................................................1,700 machine-hours Standard machine-hours allowed for the actual output...2,000 machine- hours Actual fixed manufacturing overhead costs........................$41,740 Required: a. Compute the budget variance for September. Show your work! b. Compute the volume variance for September. Show your work!Explanation / Answer
a) Budget variance
= 42400 - 41740 = 660
b) volume variance is 1700 - 1600 = 100
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