Jack and John Company make clocks. The fixed overhead costs for 2020 total $900,000. The company uses direct labor hours for fixed overhead allocation and anticipates 200,000 hours during the year for 330,000 units. An equal number of units are budgeted for each month. During June, 32,000 clocks were produced and $72,000 was spent on fixed overhead. a. Determine the fixed overhead rate for 2020 based on units of inputs. b. Determine the fixed overhead static-budget variance for June. c. Determine the production-volume overhead variance for June.

Jack and John Company make clocks. The fixed overhead costs for 2020 total $900,000. The company uses direct labor hours for fixed overhead allocation and anticipates 200,000 hours during the year for 330,000 units. An equal number of units are budgeted for each month. During June, 32,000 clocks were produced and $72,000 was spent on fixed overhead. a. Determine the fixed overhead rate for 2020 based on units of inputs. b. Determine the fixed overhead static-budget variance for June. c. Determine the production-volume overhead variance for June.

Name: Jack and John Company make clocks. The fixed overhead costs for 2020
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Description: Jack and John Company make clocks. The fixed overhead costs for 2020 total$900,000. The company uses direct labor hours for fixed overhead allocationand anticipates 200,000 hours during the year for 330,000 units. An equalnumber of units are budgete

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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