EBusinessCourse Menu e Abiola So ADMN919-Management Accounting My Subscriptions/
ID: 2581565 • Letter: E
Question
EBusinessCourse Menu e Abiola So ADMN919-Management Accounting My Subscriptions/Courses / ADMN919-Management Accounting Module 23/ Module 23 Homework QUESTION 6 Not co 3.00 points out of 4.00 P Fg Fixed Overhead Variances Assume that ExxonMobil uses a standard cost system for each of its refineries. For the Houston refinery, the monthly fixed overhead budget is $8,000,000 for a planned outputs of 5,000,000 barrels. For September, the actual fixed cost was $8,750,000 for 5.100.000 barrels a. Determine the fixed overhead budget variance. $ 750,000 U b. If fixed overhead is applied on a per-barrel basis, determine the volume varlance $ 17.000 Check You have correctly selected 3 Partially correct Marks for this submission: 3.00/4.00.Explanation / Answer
ans) 1. fixed ovrhead budget variance = Actual fixed overhead - Budgeted fixed overhead
= 8,750,000 - 8,000,000
= 750,000 U
2. Volume variance = Absorbed fixed overhead - Budgeted fixed overhead
Fixed overhead per barreal = 8,000,000 / 5,000,000 = 1.6
= 5,100,000 X 1.6 - 5,000,000 X 1.6
=8,160,000 - 8,000,000
=1,60,000 F
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