Modine Corporation has provided the following data for September.?Denominator level of activity1,600 machine-hours?Budgeted fixed manufacturing overhead costs$42,400??Fixed portion of the predetermined overhead rate$26.50 per machine-hour?Actual level of activity1,700 machine-hours?Standard machine-hours allowed for the actual output2,000 machine-hours?Actual fixed manufacturing overhead costs$41,740?Required:a. Compute the budget variance for September. Show your work!b. Compute the volume variance for September. Show your work!
What will be an ideal response?
a. Budget variance = Actual fixed manufacturing overhead cost ? Budgeted fixed manufacturing overhead cost = $41,740 - $42,400 = $660 F
b. Volume variance = Fixed portion of the predetermined overhead rate × (Denominator hours - Standard hours allowed)
= $26.50 per machine-hour × (1,600 machine-hours - 2,000 machine-hours)
= $26.50 per machine-hour × (-400 machine-hours)
= $10,600 F
You might also like to view...
Back Company sold merchandise on credit. Its gross profit ratio is 23%. The effect of this transaction is that the
a. earnings per share decreased b. current ratio was unchanged c. debt-to-equity ratio increased d. earnings per share increased
In addition to other sources, MELT uses subscription-based __________ such as Lexus-Nexus to conduct its research.
Fill in the blank(s) with correct word
What usually happens if a hostile takeover attempt is successful?
What will be an ideal response?
Which of the following requirements is least likely to be an obstacle to recovery for a plaintiff in a strict liability action brought pursuant to Section 402A?
a. Statute of repose b. Failure to warn c. Privity d. Subsequent alteration