A. What is the flexible budget amount for fixed overhead? B. How much fixed over

Question

A. What is the flexible budget amount for fixed overhead?

B. How much fixed overhead was allocated to production during the month?

C. What is Raymone's Fixed overhead spending variance?

D. What is Rayome's fixed overhead production-volume variance?

4. D ave Rayome Corporation (DRC) manufactured 25,000 grooming kits for business students uring December. The following fixed overhead data pertain to December when overhead was allocated based on machine hours: (12 points) Production Machine Hours Fixed OH Costs Actual 25,000 Units 6,100 Hours $123,000 $366,000 Budgeted 24,000 Units 6,000 Hours $120,000 $360,000 Variable OH Costs

Explanation / Answer

a)Fixed overhead flecxible budget=

Over head cost=(6100/6000)*120,000=$122,000

b)=(24000/25000)*122000=$117,120

c)Fixed overhead spending variance=123,000-122,000=1000(un faviurable)

d)fixed overhead volume variance=(125000-24000)*2=2000(unfavourable)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.