$6$ PARTS Question content area top

Part $1$

Calvin Industries produces$$ high$-$end flutes for professional musicians across the globe. Actual fixed manufacturing overhead for the year was $ $1$ comma $250$ comma $000,$ while the budgeted fixed manufacturing overhead was $ $1$ comma $270$ comma $000.$ Using a standard costing$$ system, the company allocated $ $1$ comma $200$ comma $000$ of overhead to production.

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Question content area bottom

Part $1$

Requirement $1.$ Calculate the total fixed overhead variance. What does this tell$$ managers?

Begin by determining the formula for the fixed overhead budget$$ variance, then compute the variance. $($Abbreviation used: Std$.=$ Standard. Enter the variance as a positive number. Label the variance as favorable$($F$)$ or unfavorable$($U$)$ in the input field after the amount you$$ enter.$)$

$1.$

Calculate the total fixed overhead variance. What does this tell$$ managers?

$2.$

Determine the fixed overhead budget variance. What does this tell$$ managers?

$3.$

Determine the fixed overhead volume variance. What does this tell$$ managers?Calvin Industries produces high$-$end flutes for professional musicians across the globe. Actual fixed manufacturing overhead for the year was $$1,250,000,$ while the

budgeted fixed manufacturing overhead was $$1,270,000.$ Using a standard costing system, the company allocated $$1,200,000$ of overhead to production.

Read the requirements.

Requirement $1.$ Calculate the total fixed overhead variance. What does this tell managers?

Begin by determining the formula for the fixed overhead budget variance, then compute the variance. $($Abbreviation used: Std$.=$ Standard. Enter the variance as a

positive number. Label the variance as favorable $($F$)$ or unfavorable $(U)$ in the input field after the amount you enter.$)$

Fixed

$=$ overhead variance

$=$