Derrington Manufacturing applies manufacturing overhead to products based on standard machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was $24,300, and the actual fixed manufacturing overhead cost for the month was $23,850. The company based its original budget on 6,000 machine-hours. The standard hours allowed for the actual output of the month totaled 6,400 machine hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?

Derrington Manufacturing applies manufacturing overhead to products based on standard machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was $24,300, and the actual fixed manufacturing overhead cost for the month was $23,850. The company based its original budget on 6,000 machine-hours. The standard hours allowed for the actual output of the month totaled 6,400 machine hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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