Acme Company's production budget for August is 18,500 units and includes the following component unit costs:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Acme Company's production budget for August is 18,500 units and includes the following component unit costs: direct materials, $8.1; direct labor, $11.0; variable overhead, $5. Budgeted fixed overhead is $42,000. Actual production in August was 20,250 units. Actual unit component costs incurred during August include direct materials, $9.20; direct labor, $10.40; variable overhead, $5.50 Actual fixed overhead was $44,500. The standard fixed overhead application rate per unit consists of $2.2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance Acme Company's production budget for August is 18,500 units and includes the following component unit costs: direct materials, $8.1; direct labor, $11.0; variable overhead, $5. Budgeted fixed overhead is $42,000. Actual production in August was 20,250 units. Actual unit component costs incurred during August include direct materials, $9.20; direct labor, $10.40; variable overhead, $5.50 Actual fixed overhead was $44,500. The standard fixed overhead application rate per unit consists of $2.2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The rent control agency of New York City has found that aggregate demand is QD 160 8P. Quantity is measured in tens of thousands of apartments. Price, the average monthly rental rate, is measured...
-
For decades, New York City has had to deal with the vandalism and defacement of public property caused by unauthorized graffiti. Among other attempts to stop the damage, in December 2005 the city...
-
New York City licenses taxicabs in two classes: (1) for operation by companies with fleets and (2) for operation by independent driver-owners having only one cab. Strict limits are imposed on the...
-
A 4-ft-high, 3-ft-diameter cylindrical water tank whose top is open to the atmosphere is initially filled with water. Now the discharge plug near the bottom of the tank is pulled out, and a water jet...
-
A 2-kW baseboard electric resistance heater in a vacant room is turned on and kept on for 15 min. The mass of the air in the room is 75 kg, and the room is tightly sealed so that no air can leak in...
-
Express the natural unit of energy in terms of the SI unit joule and also in terms of \(\mathrm{eV}\).
-
For the following products and countries, identify the type of warehouse that should be used as well as the method of transportation that should deliver the product to end users. Using the Internet,...
-
Support-department cost allocation: direct and step-down methods. Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support...
-
Q2 If Z is a normal N (0, 1), then the X = tz; process is continuous and is marginally distributed as a normal N (0, t). Is X a Brownian motion?
-
A 3 MWe wind turbine can be placed at either Site A or B, which have respective probability density functions for the wind velocity at the site (assume that the power output of the turbine varies as...
-
Assume that there was a sign on the ladder that said, " Do Not Stand on Top Step" and Jimstood on the top step. Also assume that by not heeding the warning Jimfailed to act as a reasonable person...
-
A 243-kg projectile, fired with a speed of 112 m/s at a 67.0 angle, breaks into three pieces of equal mass at the highest point of its arc (where its velocity is horizontal). Two of the fragments...
-
In a class named ArrayMethods, write each of the methods described below. 0. Include the following class declaration at the beginning of your class: public static final String[] DAYS = {"Sunday",...
-
Write a program that uses the Airline class(described below) to assign seats for a commercial airplane. The airplane has 13 rows, with 6 seats in each row - first row (1A, 1B, 1C, 1D, 1E, 1F) second...
-
If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market A Expected Return 4% 18% 16% Possible Not possible Standard Deviation 0% 30% 28%
-
Your little brother is having trouble with arithmetic-particularly, his addition and multiplication of positive integers. Your parents realize that after taking a few weeks of your Java programming...
-
What if the charge of the electron and proton were not perfectly balanced? For instance, what would the electrostatic repulsion between your left and right hand be if the magnitude of the proton...
-
For liquid water the isothermal compressibility is given by; where r and b are functions of temperature only. If 1 kg of water is compressed isothermally and reversibly from I to 500 bar at 60(C. how...
-
Assume that the marginal cost of production is greater than the average variable cost. Can you determine whether the average variable cost is increasing or decreasing? Explain.
-
Use the same information as in Exercise 1. a) Derive the firms short-run supply curve. b) If 100 identical firms are in the market, what is the industry supply curve?
-
There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by W1 = $200 - T, W2 = $240 - 2T, W3 = $320 - 2T. Suppose public...
-
You are provided with the worksheet for Norman Pty Ltd for the year ended 30 June 2019. The adjustments have already been made and the worksheet begins with the adjusted trial balance. Assume all...
-
You are provided with the cost of goods manufactured statement and income statement for Prider Manufacturers Ltd. Required (a) Prepare the closing entries for Prider Manufacturers Ltd. Direct...
-
The listing of the ledger accounts (unadjusted) of Smart Manufacturing Systems Pty Ltd at 30 June 2019 is provided. All ledger balances are normal balances. Additional information relating to the...
Study smarter with the SolutionInn App