Selected information relating to the fixed overhead costs of Westwood Company for the most recent year is

Question:

Selected information relating to the fixed overhead costs of Westwood Company for the most recent year is given below:

Activity:

Number of units produced . . . . . . . . . . . . . . . . . . . 9,500

Standard machine-hours allowed per unit . . . . . . . 2

Denominator activity (machine-hours) . . . . . . . . . 20,000

Costs:

Actual fixed overhead costs incurred . . . . . . . . . . . $79,000

Budget variance . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 F

Overhead cost is applied to products on the basis of standard machine-hours.


Required:

1. What was the fixed portion of the predetermined overhead rate?

2. What were the standard machine-hours allowed for the period’s production?

3. What was the volume variance?


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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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