Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead
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Question:
Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget | Actual Costs | |||||
Fixed overhead costs: | ||||||
Supervision | $ | 37,000 | $ | 37,550 | ||
Utilities | 23,000 | 23,170 | ||||
Factory depreciation | 25,200 | 24,940 | ||||
Total fixed overhead cost | $ | 85,200 | $ | 85,660 | ||
The company based its original budget on 8,200 machine-hours. The company actually worked 8,640 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 8,360 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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