Question
Burke Manufacturing produces luxury dog houses. Each dog house requires 4.0 hours of machine time for its elaborate trim and finishing. For the current
Burke Manufacturing produces luxury dog houses. Each dog house requires 4.0 hours of machine time for its elaborate trim and finishing. For the current year, Burke calculated its predetermined fixed manufacturing overhead (MOH) rate to be $29 per machine hour. The company budgets its fixed MOH to be $226,400 per month. Last month, Burke produced 1,900 dog houses and incurred $228,400 (actual) of fixed MOH. Read the requirements. Requirement 1. Calculate the fixed overhead budget variance. Begin by determining the formula for the fixed overhead budget variance, then compute the variance. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Requirements 1. Calculate the fixed overhead budget variance. 2. Calculate the fixed overhead volume variance. Print Done Fixed MOH budget variance
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