| | |-| + | M ezto.mheducation.com/hm.tpx-Chapter l S Homework Chapter 15 Homewo
ID: 2455477 • Letter: #
Question
| | |-| + | M ezto.mheducation.com/hm.tpx-Chapter l S Homework Chapter 15 Homework Courses - Blackboard LearnMy Grades (201509-MBA502 10.00 points Mini-Exercise 15-6 Fixed overhead variances LO 4, 5, 6 Acme Company's production budget for August is 17.500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $32,000. Actual production in August was 18,000 units, actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead, $6.82. Actual fixed overhead was $33,500, the standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicato the offect of each variance by selecting "F" for favorable, "U for unfavorable.) Fixed overhead budget variance Fixed overhead volume variance $ 1,500 UExplanation / Answer
Fixed overead volume variance = Budgeted overhead -applied overhead
= 32000 - (17500 *1*2 )
= 32000 - 35000
= -3000(F)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.