pany manufac a product that requires 2 machine hours per unit. The variable and fixed overhead rates were computed using expected capacity of 90,000 units (produced evenly throughout the year) and expected variable and fixed overhead costs, respectively of $540,000 and $900,000. During November, only 80,000 units were actually produced. Actual machine hours used were 165,000. Actual overhead incurred was $518,000 variable and $860,000 fixed. Refer to Tex Metal Company. The variable overhead spending variance for November was O $38,000 U. O $38,000 F $15,000 U. O $23,000 U.
pany manufac a product that requires 2 machine hours per unit. The variable and fixed overhead rates were computed using expected capacity of 90,000 units (produced evenly throughout the year) and expected variable and fixed overhead costs, respectively of $540,000 and $900,000. During November, only 80,000 units were actually produced. Actual machine hours used were 165,000. Actual overhead incurred was $518,000 variable and $860,000 fixed. Refer to Tex Metal Company. The variable overhead spending variance for November was O $38,000 U. O $38,000 F $15,000 U. O $23,000 U.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tex Metal Company manufactures a product that requires 2 machine hours per unit. The variable and fixed
overhead rates were computed using expected capacity of 90,000 units (produced evenly throughout the year)
and expected variable and fixed overhead costs, respectively of $540,000 and $900,000. During November,
only 80,000 units were actually produced. Actual machine hours used were 165,000. Actual overhead incurred
was $518,000 variable and $860,000 fixed.
Refer to Tex Metal Company. The variable overhead spending variance for November was
$38,000 U.
$38,000 F.
$15,000 U.
O $23,000 U.
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