Selected operating information on three different companies for a recent year is given below: Company A B
Fantastic news! We've Found the answer you've been seeking!
Question:
Selected operating information on three different companies for a recent year is given below:
|
| Company |
|
| A | B | C |
Full-capacity machine-hours | 10,000 | 18,000 | 20,000 |
Budgeted machine-hours* | 9,000 | 17,000 | 20,000 |
Actual machine-hours | 9,000 | 17,800 | 19,000 |
Standard machine-hours allowed for actual production |
|
|
|
9,500 | 16,000 | 20,000 | |
*Denominator activity for computing the predetermined overhead rate. |
Required:
For each company, state whether the company would have a favorable or unfavorable volume variance and why.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date: