Asked by Brendan Callanan on Apr 24, 2024
Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,900 machine-hours. The budgeted fixed manufacturing overhead costs are $328,410. In April, the actual fixed manufacturing overhead costs were $334,640 and the standard machine-hours allowed for the actual output were 9,200 machine-hours.
Required:
a. Compute the budget variance for April.
b. Compute the volume variance for April.
Budget Variance
The difference between budgeted and actual amounts for a particular accounting category.
Volume Variance
The difference between actual and budgeted sales volumes, impacting the expected revenue or costs.
Actual Fixed Manufacturing Overhead
The real, incurred fixed costs associated with the production process, excluding variable costs, within a specific timeframe.
- Assess various variances connected to manufacturing overhead, like budget, volume, rate, and efficiency variances.
Learning Objectives
- Assess various variances connected to manufacturing overhead, like budget, volume, rate, and efficiency variances.
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