10 15 297000 352000 352000 22000 u voh spending 33000

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Unformatted text preview: X: output * Bud Rate (198,000 * 0.10 * $15) $297,000 $352,000 $352,000 $22,000 U VOH Spending $33,000 U VOH Efficiency Chapter 8 Flexible Budgets, Overhead Cost Variances and Management Control Management A company provides the information below about its manufacturing operation: Actual machine hours used 22,000 22,000 Budgeted total overhead $900,000 Actual variable overhead incurred $352,000 Actual fixed overhead incurred $575,000 Budgeted production is 200,000 units of output and actual production is 198,000 units of output. One-tenth of a machine hour is budgeted per unit One-tenth of output. The budgeted fixed overhead cost rate is $30 per machine hour. budgeted Compute the fixed overhead spending and production volume variances: Compute Step 1, compute the budgeted fixed overhead: Step Budgeted fixed overhead 200,000 * (0.10 * $30) 200,000 (600,000) Chapter 8 Flexible Budgets, Overhead Cost Variances and Management Control Management A company provides the information below about its manufacturing operation: Actual machine hours used 22,000 22,000 Budgeted total overhead $900,000 Actual variable overhead incurred $352,000 Actual fixed overhead incurred $575,000 Budgeted production is 200,000 units of output and actual productio...
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