RDX Corporation's production budget for September is 22,000 units and includes the following component unit costs: direct materials, $7.50; direct labor, $12.00; variable overhead, $6.20. Budgeted fixed overhead is $55,000. Actual production in September was 23,400 units, actual unit component costs incurred during September include direct materials, $8.10; direct labor, $11.80; variable overhead, $6.50. Actual fixed overhead was $57,000, the standard fixed overhead application rate per unit consists of $2.50 per machine hour and each unit is allowed a standard of 1.2 hours of machine time. Calculate the fixed overhead budget variance.
RDX Corporation's production budget for September is 22,000 units and includes the following component unit costs: direct materials, $7.50; direct labor, $12.00; variable overhead, $6.20. Budgeted fixed overhead is $55,000. Actual production in September was 23,400 units, actual unit component costs incurred during September include direct materials, $8.10; direct labor, $11.80; variable overhead, $6.50. Actual fixed overhead was $57,000, the standard fixed overhead application rate per unit consists of $2.50 per machine hour and each unit is allowed a standard of 1.2 hours of machine time. Calculate the fixed overhead budget variance.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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RDX Corporation's production budget for September is 22,000 units and includes the following component unit costs: direct materials, $7.50; direct labor, $12.00; variable overhead, $6.20. Budgeted fixed overhead is $55,000. Actual production in September was 23,400 units, actual unit component costs incurred during September include direct materials, $8.10; direct labor, $11.80; variable overhead, $6.50. Actual fixed overhead was $57,000, the standard fixed overhead application rate per unit consists of $2.50 per machine hour and each unit is allowed a standard of 1.2 hours of machine time. Calculate the fixed overhead budget variance.
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