Olive industries produced 30,000 units this month and used 36,000 machine hours. The company's static budget for manufacturingoverhead costs based on 37,500 machine hours is as follows:VariableIndirect materialsIndirect laborFactory suppliesTaxesDepreciationFixedSupervision$441,000630,00063,000$126,00021,000105,000During the month, Olive's actual costs were $1.75 per machine hour for factory supplies. What is the amount of difference for factorysupplies shown on the company's manufacturing overhead flexible budget report?O $7,980 favorableO $0-budgeted and actual costs were equalO $2,520 unfavorableO $2,520 favorable

Name: Olive industries produced 30,000 units this month and used 36,000 mac
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Description: Olive industries produced 30,000 units this month and used 36,000 machine hours. The company's static budget for manufacturingoverhead costs based on 37,500 machine hours is as follows:VariableIndirect materialsIndirect laborFactory suppliesTaxesDep

The variance is the difference between actual and budgeted costs of production. The flexible budget…

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Olive industries produced 30,000 units this month and used 36,000 machine hours. The company's static budget for manufacturing overhead costs based on 37,500 machine hours is as follows: Variable Indirect materials $441,000 630,000 63,000 Indirect labor Factory supplies Taxes Depreciation Fixed Supervision $126,000 21,000 105,000 During the month, Olive's actual costs were $1.75 per machine hour for factory supplies. What is the amount of difference for factory supplies shown on the company's manufacturing overhead flexible budget report? O $7,980 favorable O $0-budgeted and actual costs were equal O $2,520 unfavorable O $2,520 favorable

Olive industries produced 30,000 units this month and used 36,000 machine hours. The company's static budget for manufacturing overhead costs based on 37,500 machine hours is as follows: Variable Indirect materials $441,000 630,000 63,000 Indirect labor Factory supplies Taxes Depreciation Fixed Supervision $126,000 21,000 105,000 During the month, Olive's actual costs were $1.75 per machine hour for factory supplies. What is the amount of difference for factory supplies shown on the company's manufacturing overhead flexible budget report? O $7,980 favorable O $0-budgeted and actual costs were equal O $2,520 unfavorable O $2,520 favorable

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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