Question
Blue Gum Ltd uses a standard costing system. The firm estimates that it will operate its manufacturing facilities at 638,000 machine hours for the year.
Blue Gum Ltd uses a standard costing system. The firm estimates that it will operate its manufacturing facilities at 638,000 machine hours for the year. The estimate for total budgeted overhead is $4492,000. The standard variable overhead rate is estimated to be $2.9 per machine hour or 8.7 per unit. The actual data for the year are presented below:
Actual units produced | 272,000 |
Actual machine hours | 651,000 |
Actual variable overhead | 1656,000 |
Actual fixed overhead | 399,000 |
Calculate and enter the amount of fixed overhead volume variance in the answer space below:
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