Zippo, Inc budgeted and incurred (actual) fixed manufacturing overhead costs of $80,000 in 2016. Other information for
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Question:
Budgeted or planned production 2,000 units
Actual production totaled 1,800 units
Units sold 1,500 units
Beginning Finished Goods Inv. 400 units
The company uses absorption costing and fixed manufacturing overhead rate was based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
Under absorption costing, the production volume variance dollar amount is:
The production volume variance is: Type: Favorable or Unfavorable?
Which income will be higher? Type: Absorption costing or Variable Costing
By how much?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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