(Appendix 11A)Faessler Corporation applies overhead to products based on machine-hours.The denominator level of activity is 6, 500 machine-hours.The budgeted fixed manufacturing overhead costs are $242, 450.In July, the actual fixed manufacturing overhead costs were $242, 490 and the standard machine-hours allowed for the actual output were 7, 000 machine-hours.
Required:
a.Compute the budget variance for July.Show your work!
b.Compute the volume variance for July.Show your work!

Question

Quizplus · Accepted Answer

The Answer of (Appendix 11A)Faessler Corporation applies overhead to products based on machine-hours.The denominator level of activity is 6, 500 machine-hours.The budgeted fixed manufacturing overhead costs are $242, 450.In July, the actual fixed manufacturing overhead costs were $242, 490 and the standard machine-hours allowed for the actual output were 7, 000 machine-hours.
Required:
a.Compute the budget variance for July.Show your work!
b.Compute the volume variance for July.Show your work!

(Appendix 11A)Faessler Corporation Applies Overhead to Products Based on Machine-Hours