Problems

$(5$ Points$)$ The Menlo Corporation has provided the following data for February.

Denominator level of activity $4,400$ machine$-$hours

Budgeted fixed manufacturing overhead costs

Standard machine$-$hours allowed for the actual output $$107,360$

Actual fixed manufacturing overhead costs

$4,200$ machine$-$hours $$104,470$

Required:

a$.$ Compute the budget variance for February.

b$.$ Compute the volume variance for February.

Budget Variance

Volume Variance