Becker Bikes manufactures tricycles. The company expects to sell 550 units in May and 680 units in June. Beginning and ending finished goods for May are expected to be 195 and 160 units, respectively. June's ending finished goods are expected to be 170 unit The company's variable overhead is $12.50 per unit produced and its fixed overhead is $13,000 per month. Compute Becker's manufacturing overhead budget for May and June. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. May June
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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