Tierman Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead $ 221,700 Budgeted production (a) Standard hours per unit (b) Budgeted hours (a) x (b) Actual production (a) Standard hours per unit (b) Standard hours allowed for the actual production (a) x (b) 34,000 Actual fixed manufacturing overhead $ 207,700 The fixed overhead budget variance is: 15,000 2.00 30,000 17,000 2.00 units machine-hours machine-hours units machine-hours machine-hours

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Tierman Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a
standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the
actual output of the period. Data concerning the most recent year appear below:
Budgeted fixed manufacturing overhead
$ 221,700
Budgeted production (a)
Standard hours per unit (b)
Budgeted hours (a) x (b)
Actual production (a)
Standard hours per unit (b)
Standard hours allowed for the actual production (a) x (b) 34,000
Actual fixed manufacturing overhead
$ 207,700
The fixed overhead budget variance is:
15,000
2.00
30,000
17,000
2.00
units
machine-hours
machine-hours
units
machine-hours
machine-hours
Transcribed Image Text:Tierman Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead $ 221,700 Budgeted production (a) Standard hours per unit (b) Budgeted hours (a) x (b) Actual production (a) Standard hours per unit (b) Standard hours allowed for the actual production (a) x (b) 34,000 Actual fixed manufacturing overhead $ 207,700 The fixed overhead budget variance is: 15,000 2.00 30,000 17,000 2.00 units machine-hours machine-hours units machine-hours machine-hours
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