Prepare a T-account that for Fixed Manufacturing Overhead based on Absorption costing that shows: actual costs, applied costs, rate variance and production volume variance (this account should be at zero at year-end)
 

Transcribed Image Text:

Prior Year Prior Year Current Year Current Year (Budget) (Actual) (Budget) (Actual) Beginning Inventory (Units) Sales (Units) Manufactured (Units) Selling Price (S/unit) Variable Manufacturing Cost (S/unit) Total Fixed Manufacturing Costs ($) Variable Selling Cost ($/unit) Total Fixed SG&A Costs ($) ? 600,000 600,000 580,000 590,000 575,000 640,000 570,000 610,000 9.99 9.90 9.95 10.00 4.92 4.92 4.95 4.95 1,584,000 1,561,000 1,619,200 1,599,531 1.00 1.01 0.99 1.00 350,000 353,000 352,850 348,000 Other information: The manufacturer uses FIFO The manufacturer uses Standard Costing Prior Year Prior Year Current Year Current Year (Budget) (Actual) (Budget) (Actual) Beginning Inventory (Units) Sales (Units) Manufactured (Units) Selling Price (S/unit) Variable Manufacturing Cost (S/unit) Total Fixed Manufacturing Costs ($) Variable Selling Cost ($/unit) Total Fixed SG&A Costs ($) ? 600,000 600,000 580,000 590,000 575,000 640,000 570,000 610,000 9.99 9.90 9.95 10.00 4.92 4.92 4.95 4.95 1,584,000 1,561,000 1,619,200 1,599,531 1.00 1.01 0.99 1.00 350,000 353,000 352,850 348,000 Other information: The manufacturer uses FIFO The manufacturer uses Standard Costing

Answer rating: 100% (QA)

Answer Answer A Preparation of Budgeted income statement of current year based on variable costing Particulars Amount Amount Sales 575000 units X 995 5721250 Less Variable cost Manufacturing Variable ... View the full answer