Delta Company's flexible budget formula for overhead costs is $100,000 per month fixed costs plus $26.00 per

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Delta Company's flexible budget formula for overhead costs is $100,000 per month fixed costs plus $26.00 per unit variable costs. Standard volume is 5,000 units a month. Actual overhead costs for June were $280,000, and output was 6,000 units.
Required:
Determine for June:
a. Budgeted overhead at standard volume.
b. Overhead absorption rate.
c. Overhead costs absorbed in June.
d. June's overhead production volume variance.
e. June's overhead spending variance.
f. June's net overhead variance.
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Accounting Texts and Cases

ISBN: 978-1259097126

13th edition

Authors: Robert Anthony, David Hawkins, Kenneth Merchant

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