Provides the information below about its

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Unformatted text preview: agement 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 of output. The budgeted fixed overhead cost One-tenth rate is $30 per machine hour. $30 Compute the variable overhead spending and efficiency variances: Compute Step 1, compute the budgeted variable overhead: Step Budgeted total overhead Less budgeted fixed overhead 200,000 * (0.10 * $30) 200,000 Budgeted variable overhead $900,000 (600,000) $300,000 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 pro...
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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.

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