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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 43
Calculating the Fixed Overhead Spending and Volume Variances
Standish Company manufactures consumer products and provided the following information for the month of February:
Required:
1. Calculate the fixed overhead spending variance using the formula approach.
2. Calculate the volume variance using the formula approach.
3. Calculate the fixed overhead spending variance and volume variance using the three-pronged graphical approach.
4. What if 129,600 units had actually been produced in February? What impact would that have had on the fixed overhead spending variance? On the volume variance?
Standish Company manufactures consumer products and provided the following information for the month of February:
Required:
1. Calculate the fixed overhead spending variance using the formula approach.
2. Calculate the volume variance using the formula approach.
3. Calculate the fixed overhead spending variance and volume variance using the three-pronged graphical approach.
4. What if 129,600 units had actually been produced in February? What impact would that have had on the fixed overhead spending variance? On the volume variance?
Explanation
Verified
Verified
1.To compute fixed overhead spending var...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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