Gregorich Incorporated makes a single product-a critical part used in commercial airline seats. 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$294,490 Budgeted production (a) 35,000unitsStandard hours per unit (b) 1.40machine-hoursBudgeted hours (a) × (b) 49,000machine-hours Actual production (a) 30,000unitsStandard hours per unit (b) 1.40machine-hoursStandard hours allowed for the actual production (a) × (b) 42,000machine-hours Actual fixed manufacturing overhead$314,490 Actual hours 40,600machine-hoursThe fixed overhead budget variance is:
A. $62,070 U
B. $20,000 F
C. $62,070 F
D. $20,000 U
Answer: D
You might also like to view...
Productivity losses caused by reduced employee morale are an example of a(n) ____ cost
a. direct cost b. indirect cost c. intangible cost d. nonrecurring cost
Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?
A) demographic B) occupational C) psychographic D) behavioral E) gender
Ranier Parts Company has a return on assets of 12% and a return on common stockholders' equity of 15%. What causes the difference in the two returns?
An atom's atomic mass is best described as the mass of
A. protons and electrons it contains. B. electrons in the outermost shell. C. protons and neutrons it contains. D. the protons it contains. E. the neutrons it contains.