Swifty Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less...
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Swifty Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Swifty are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,054,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH Actual results for January: ● ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours 2.0 machine hours 2.0 machine hours ● Standard Price $20.00 per gallon $17.00 per DL hour $2.60 per machine hour $4.00 per machine hour 21,000 gallons were actually produced. Cost of DM purchased was $246,000 for 12,000 gallons of solution. DM used in production was 10,290 gallons. Cost of DL was $107,415 for 6,510 DL hours worked. Variable-MOH cost was $117,810 for 46,200 machine hours used. Fixed-MOH cost was $191,730. Determine the fixed-MOH price and volume variances for the month. Fixed-MOH price variance Fixed-MOH volume variance $ $ Swifty Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Swifty are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,054,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH Actual results for January: ● ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours 2.0 machine hours 2.0 machine hours ● Standard Price $20.00 per gallon $17.00 per DL hour $2.60 per machine hour $4.00 per machine hour 21,000 gallons were actually produced. Cost of DM purchased was $246,000 for 12,000 gallons of solution. DM used in production was 10,290 gallons. Cost of DL was $107,415 for 6,510 DL hours worked. Variable-MOH cost was $117,810 for 46,200 machine hours used. Fixed-MOH cost was $191,730. Determine the fixed-MOH price and volume variances for the month. Fixed-MOH price variance Fixed-MOH volume variance $ $
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To determine the fixedMOH price and volume variances you can use the following formulas FixedMOH Pri... View the full answer
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