Shimon Corporation manufactures industrial-size water chillers and uses budgeted machine-hours to allocate variable manufacturing overhead. The following
Question:
Shimon Corporation manufactures industrial-size water chillers and uses budgeted machine-hours to allocate variable manufacturing overhead.
The following information refers to the general manufacturing data of the company:
Budgeted output units 15,000 units
Budgeted Machine-Hours 5000 hours
Budgeted variable manufacturing overhead for 15,000 units $161,250
Actual output units produced 22,000 units
Actual machine-hours used 7,200 hours
Actual variable manufacturing overhead costs $242,000
Questions
What is the budgeted variable overhead cost rate per unit of output?
What is the flexible budget amount for variable manufacturing overhead?
What is the flexible budget variance for variable manufacturing overhead?
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura