The following information for 2013 is for Morgan Corporation which
The following information for 2013 is for Morgan Corporation, which uses standard costing:
Static-budget machine-hours .............. 33,000
Fixed overhead budget costs ..............$ 5,940,000
Fixed overhead actual costs .............. $ 5,400,000
Variable overhead actual costs ..............$11,520,000
Variable overhead rate per machine-hour ......... $ 360
Actual machine hours used .............. 30,000
Budgeted machine-hours allowed for actual output ..... 35,000
REQUIRED
1. Calculate variable overhead rate variance and efficiency variance.
2. Compute fixed overhead rate variance and production-volume variance.
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