Fresh-Cut actually processed 180,000 cases of frozen organic vegetables during the year and incurred $840,000 of manufacturing overhead. Of this amount, $610,000 was fixed. Requirements 1. What is the flexible budget (for the actual output) for variable overhead? for fixed overhead? for total overhead? 2. How much overhead would have been allocated to production? 3. Use your answer from Requirement

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Fresh-Cut actually processed 180,000 cases of frozen organic vegetables during the year and incurred $840,000 of manufacturing overhead. Of this amount, $610,000 was fixed.
Requirements
1. What is the flexible budget (for the actual output) for variable overhead? for fixed overhead? for total overhead?
2. How much overhead would have been allocated to production?
3. Use your answer from Requirement 1 to determine the overhead flexible budget variance. What does this tell managers?
4. Use your answer from Requirements 1 and 2 to determine the production volume variance. What does this tell managers?
5. What is the total overhead variance?
Related Book For answer-question

Managerial Accounting

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

ISBN: 978-0176223311