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Chapter 15 part 3 The Diamond Manufacturing Company uses a standard cost system for and applies...

Chapter 15 part 3

The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:

Standard:

Machine hours (MH) per unit

2

Fixed overhead rate per MH

$5.00

Budgeted fixed overhead

$25,000

Actual:

Machine hours

4,800

Fixed overhead

$26,200

Units produced

2,600


Calculate the fixed overhead budget variance and volume variance for the month of June.

Business   Accounting   
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Answer #1

Fixed Overhead Budget Variance

Fixed Overhead Volume Variance

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