Dull Corporation applies overhead to products based on machine-hours.The denominator level of activity is 8,600 machine-hours.The budgeted fixed manufacturing overhead costs are $286,380.In October,the actual fixed manufacturing overhead costs were $274,330 and the standard machine-hours allowed for the actual output were 8,400 machine-hours.
Required:
a.Compute the budget variance for October.Show your work!
b.Compute the volume variance for October.Show your work!

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The Answer of Dull Corporation applies overhead to products based on machine-hours.The denominator level of activity is 8,600 machine-hours.The budgeted fixed manufacturing overhead costs are $286,380.In October,the actual fixed manufacturing overhead costs were $274,330 and the standard machine-hours allowed for the actual output were 8,400 machine-hours.
Required:
a.Compute the budget variance for October.Show your work!
b.Compute the volume variance for October.Show your work!

Dull Corporation Applies Overhead to Products Based on Machine-Hours