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Unformatted text preview: duction is 198,000 units of output. One-tenth of a machine hour is budgeted per unit of output. The budgeted fixed overhead cost One-tenth rate is $30 per machine hour. rate Compute the variable overhead spending and efficiency variances: Compute Step 2, compute the budgeted variable overhead cost rate per machine hour: Step $300,000 (from step 1) / (200,000 * 0.10) = $15 per machine hour 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 Budgeted actual One-tenth hour is budgeted per unit of output. The budgeted fixed overhead cost rate is $30 per machine hour. hour Compute the variable overhead spending and efficiency variances: Compute Step 3, compute the variances (indicate favorable or unfavorable): Step Actual costs incurred Act Input * Bud Rate (22,000 * $15 (from step 2) (22,000 $330,000 FLEX: Bud Input for actual FLE...
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This note was uploaded on 10/26/2009 for the course ACTP 5004 taught by Professor Montesarchio during the Summer '08 term at Nova Southeastern University.
- Summer '08