FIXED MANUFACTURING OVERHEAD VARIANCE ANALYSIS The Sourdough Bread Company also allocates fixed manufacturing overhead products on the
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FIXED MANUFACTURING OVERHEAD VARIANCE ANALYSIS | |||||||||||
The Sourdough Bread Company also allocates fixed manufacturing overhead products on the basis of standard direct manufacturing labour-hours. For 2017, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labour-hour. Actual fixed manufacturing overhead incurred during the year was $294,000. | |||||||||||
Required | |||||||||||
1 | Prepare a variance analysis of fixed manufacturing overhead costs. Use Exhibit 8-4 (page 296) as a guide. | ||||||||||
2 | Is fixed overhead underallocated or overallocated? By what amount? | ||||||||||
3 | Comment on your results. Discuss the variances and explain what may be driving them. |
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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