CH11 EXERCISES

CH11 EXERCISES - Chapter 11 Flexible Budgets and OH...

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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 Supplies $2,000 $2,400 $2,800 Maintenance 8,000 9,600 11,200 Utilities 1,000 1,200 1,400 Total Var. OH Costs $11,000 $13,200 $15,400 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 year. The following information was obtained from the standard cost sheet. Variable Overhead ….
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CH11 EXERCISES - Chapter 11 Flexible Budgets and OH...

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