Fixed Overhead Variances
Assume that ExxonMobil uses a standard cost system for each of its
refineries. For the Houston refinery, the monthly fixed overhead
budget is $8,300,000 for a planned outputs of 5,000,000 barrels.
For September, the actual fixed cost was $8,650,000 for 5,100,000
barrels.
a. Determine the fixed overhead budget variance.
$Answer
U or F
b. If fixed overhead is applied on a per-barrel basis, determine
the volume variance.
$Answer
U or F
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