Orion Tools, which applies overhead to production on the basis of machine-hours, reported the following data for the most recent period: Item Actual units produced Amount 9,000 units Standard fixed overhead rate $12 per hour Budgeted fixed overhead $540,000 Planned level of machine-hour activity 45,000 hours Standard machine-hours per unit 5 hours What is Orion Tools' fixed overhead volume variance?

Orion Tools, which applies overhead to production on the basis of machine-hours, reported the following data for the most recent period: Item Actual units produced Amount 9,000 units Standard fixed overhead rate $12 per hour Budgeted fixed overhead $540,000 Planned level of machine-hour activity 45,000 hours Standard machine-hours per unit 5 hours What is Orion Tools' fixed overhead volume variance?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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