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You've been asked to review the overhead rates for your client, the Plexiglas Solution Co. Plexiglas manufactures standard-sized plexiglas protectors for grocery stores and
You've been asked to review the overhead rates for your client, the Plexiglas Solution Co. Plexiglas manufactures standard-sized plexiglas protectors for grocery stores and banks. Plexiglas uses budgeted machine hours to allocate variable and fixed manufacturing overhead. The following information relates to Plexiglas's manufacturing overhead data: Budgeted output units (panels) Budgeted machine-hours Budgeted variable manufacturing overhead costs for 80,000 hours Actual output units produced Actual machine-hours used Actual variable manufacturing overhead costs Budgeted Fixed Overhead Actual Fixed Overhead 40,000 units 80,000 hours $464,000 47,000 units 86,000 hours $450,000 $1,800,000 $1,950,000 The volume variance is The flexible budget variance for variable overhead is The fixed overhead spending variance is The variable overhead rate variance is The variable overhead efficiency variance is $150,000 > > > >
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1 Allocated Fixed Overhead Actual output units Budgeted output units Budgeted Fixed Overhead Substit...Get Instant Access to Expert-Tailored Solutions
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