Bentley Manufacturing produces luxury dog houses. Each dog house requires 1.0 hours of machine time for its elaborate trim and finishing. For the current year, Bentley calculated its predetermined fixed manufa overhead (MOH) rate to be $30 per machine hour. The company budgets its fixed MOH to be $63,000 per month. Last month, Bentley produced 1,900 dog houses and incurred $65,000 (actual) of fixed MOH. Read the requirements. G Requirement 1. Calculate the fixed overhead budget variance. Begin by determining the formula for the fixed overhead budget variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH = budget variance Requirement 2. Calculate the fixed overhead volume variance. Begin by determining the formula for the fixed overhead volume variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH volume variance Requirements - X
Bentley Manufacturing produces luxury dog houses. Each dog house requires 1.0 hours of machine time for its elaborate trim and finishing. For the current year, Bentley calculated its predetermined fixed manufa overhead (MOH) rate to be $30 per machine hour. The company budgets its fixed MOH to be $63,000 per month. Last month, Bentley produced 1,900 dog houses and incurred $65,000 (actual) of fixed MOH. Read the requirements. G Requirement 1. Calculate the fixed overhead budget variance. Begin by determining the formula for the fixed overhead budget variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH = budget variance Requirement 2. Calculate the fixed overhead volume variance. Begin by determining the formula for the fixed overhead volume variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH volume variance Requirements - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bentley Manufacturing produces luxury dog houses. Each dog house requires 1.0 hours of machine time for its elaborate trim and finishing. For the current year, Bentley calculated its predetermined fixed manufact
overhead (MOH) rate to be $30 per machine hour. The company budgets its fixed MOH to be $63,000 per month. Last month, Bentley produced 1,900 dog houses and incurred $65,000 (actual) of fixed MOH.
Read the requirements.
Requirement 1. Calculate the fixed overhead budget variance.
Begin by determining the formula for the fixed overhead budget variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).)
Fixed MOH
= budget variance
Requirement 2. Calculate the fixed overhead volume variance.
Begin by determining the formula for the fixed overhead volume variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).)
=
Fixed MOH
volume variance
Requirements
1. Calculate the fixed overhead budget variance.
2. Calculate the fixed overhead volume variance.
X
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