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Chapter 15 part 3 The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is
Chapter 15 part 3
The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:
| Standard: |
|
| Machine hours (MH) per unit | 2 |
| Fixed overhead rate per MH | $5.00 |
| Budgeted fixed overhead | $25,000 |
| Actual: |
|
| Machine hours | 4,800 |
| Fixed overhead | $26,200 |
| Units produced | 2,600 |
Calculate the fixed overhead budget variance and volume variance for the month of June.
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