Question

Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual...

Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:

Original Budget Actual Costs
Fixed overhead costs:
Supervision $ 15,600 $ 15,950
Utilities 5,000 5,070
Factory depreciation 6,800 6,700
Total overhead cost $ 27,400 $ 27,720


The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

$972 Unfavorable

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Fixed Overhead manufacturing variance Actual Fixed Ovehead - Absorbed Fixed Overhead
Fixed Overhead absorption rate Budgeted fixed Overhead/Budgeted Hour
Fixed Overhead absorption rate 27400/6200
Fixed Overhead absorption rate                                  4.4
Fixed Overhead manufacturing variance 27720 - 6420*4.4
Fixed Overhead manufacturing variance 528 Favorable
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual...
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 6,400 $ 6,590 Indirect labor 10,580 9,930 Fixed overhead costs: Supervision 14,210 14,350 Utilities 13,500 13,550 Factory depreciation 57,440 57,250 Total overhead cost $ 102,130 $ 101,670 The company based its original budget on 6,500 machine-hours. The company actually worked 6,460 machine-hours during the month. The...
Merone Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases...
Merone Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases its predetermined overhead rate on 3,800 machine-hours. The company's total budgeted fixed manufacturing overhead is $14,060. In the most recent month, the total actual fixed manufacturing overhead was $13,480. The company actually worked 3,700 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,820 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?...
The following information is available for Baxter Manufacturing for April: Actual machine hours 980 Standard machine...
The following information is available for Baxter Manufacturing for April: Actual machine hours 980 Standard machine hours allowed 1,040 Denominator activity (machine hours) 1,700 Actual fixed overhead costs $ 6,600 Budgeted fixed overhead costs $ 6,800 Predetermined overhead rate ($1 variable + $4 fixed) $ 5 Is the fixed overhead price (spending) variance for April favorable or unfavorable? show work
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,700...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,700 machine-hours. The budgeted fixed manufacturing overhead costs are $319,290. In April, the actual fixed manufacturing overhead costs were $325,380 and the standard machine-hours allowed for the actual output were 9,000 machine-hours. Required: a. Compute the budget variance for April. b. Compute the volume variance for April. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,300...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,300 machine-hours. The budgeted fixed manufacturing overhead costs are $257,690. In April, the actual fixed manufacturing overhead costs were $262,800 and the standard machine-hours allowed for the actual output were 7600 machine-hours. Required: a. Compute the budget variance for April. b. Compute the volume variance for April. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no...
Xcel Technologies, Inc. applies variable manufacturing overhead to products based on machine hours. The standard variable...
Xcel Technologies, Inc. applies variable manufacturing overhead to products based on machine hours. The standard variable overhead rate is $5 per machine hour. The standard time allowed for producing one unit is 2 machine hours. During the month of August, the company produced 500 units. It incurred actual variable costs of $5,655 and used 870 machine hours. Calculate the variable overhead efficiency variance for the month of August. A) $650 favorable B) $650 unfavorable C) $845 favorable D) $845 unfavorable
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,900...
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,900 machine-hours. The budgeted fixed manufacturing overhead costs are $328,410. In April, the actual fixed manufacturing overhead costs were $334,640 and the standard machine-hours allowed for the actual output were 9,200 machine-hours. Required: a. Compute the budget variance for April. ________ __ b. Compute the volume variance for April. ________ __
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,600 machine-hours...
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,600 machine-hours Variable overhead costs: Supplies $ 11,960 Indirect labor 22,100 Fixed overhead costs: Supervision 15,600 Utilities 6,000 Depreciation 7,000 Total overhead cost $ 62,660 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,500 machine-hours rather than 2,600 machine-hours? Multiple Choice $60,750 $60,250 $61,350 $62,660 . Petrus Framing's cost...
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,800 machine-hours...
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,800 machine-hours Variable overhead costs: Supplies $ 22,040 Indirect labor 36,860 Fixed overhead costs: Supervision 16,900 Utilities 7,200 Depreciation 8,200 Total overhead cost $ 91,200 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 3,700 machine-hours rather than 3,800 machine-hours?
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $3,900, Depreciation $1,200, and Property Taxes $500. The company believes it will normally operate in a range of 7,400–11,300 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT