Chapter 11 Flexible Budgets and OH Variances review exercises
Murray Company’s flexible budget for manufacturing overhead is given below:
Var. OH Costs
10,000 Machine Hours
12,000 Machine Hours
14,000 Machine Hours
Total Var. OH Costs
The standard cost sheet reveals that OH is applied on the basis of 3 machine hours per unit.
During a recent period, the
company produced 4,000 units. The variable overhead costs incurred were $2,400 for supplies, $8,000 for maintenance,
and $1,100 for utilities.
Prepare a variable overhead performance report for the period.
Indicate whether budget variances are
favorable or unfavorable.
Shoe Inc. manufactures a line of high-top basketball shoes.
They plan to produce 60,000 pairs of shoes in the coming
The following information was obtained from the standard cost sheet.
Variable Overhead ….