Question

Bentley Manufacturing produces premium dog houses. Each dog house requires 1.0 hours of machine time for its elaborate trim and finishing. For the current year, Bentley calculated its predetermined fixed manufacturing overhead (MOH) rate to be $ 21 per machine hour. The company budgets its fixed MOH to be $ 14,000 per month. Last month, Bentley produced 1,000 dog houses and incurred $ 17,000 (actual) of fixed MOH.

Requirements
1. Calculate the fixed overhead budget variance.
2. Calculate the fixed overhead volume variance.



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  • CreatedAugust 27, 2014
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