Assume that ExxonMobil uses a standard cost system for each of its refineries. For the Houston refinery, the monthly fixed overhead budget is $9,900,000 for a planned output of 6,000,000 barrels. For September, the actual fixed cost was $10,115,000 for 5,950,000 barrels.

a. Determine the fixed overhead budget variance. $Answer

b. If fixed overhead is applied on a per-barrel basis, determine the volume variance. $Answer

Answer rating: 100% (QA)

a To determine the fixed overhead budget variance we need to compare the actual fixed overhead cost ... View the full answer