1. Formidable Company collected the following information:

Standard costs per unit:
Variable Overhead	4 machine hours at $6 per machine hour
Fixed overhead	4 machine hours at $10 per machine hour
actual output	20,000 units
Denominator output (normal capacity)	21,000 units
Actual machine hours	79,000 machine hours
Actual Variable Overhead Cost	$ 540,000
Actual Fixed Overhead Cost	$800,000

Using the three variance method, what is the budget variance?

Answer rating: 100% (QA)

SOLUTION To calculate the budget variance using the three variance method we need to calculate the f... View the full answer