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Consider the following two situations -- Cases A and B -- independently. Data refer to operations for April 2014. For each situation, assume standard costing.
Consider the following two situations -- Cases A and B -- independently. Data refer to operations for April 2014. For each situation, assume standard costing. Also assume the use of a flexible budget for control of variable and fixed manufacturing over based on machine-hours.
| Case A | Case B | |||
| (1) Fixed manufacturing overhead incurred | $ 84,920 | $ 23,180 | ||
| (2) Variable manufacturing overhead incurred | $ 120,400 | |||
| (3) Denominator level in machine-hours | 1,000 | |||
| (4) Fixed Manufacturing overhead (per standard machine-hour) | 6,200 | |||
| Flexible-Budget Data | ||||
| (6) Variable manufacturing overhead (per standard machine-hour) | $ 42 | |||
| (7) Budgeted fixed manufacturing overhead | $ 88,200 | $ 20,000 | ||
| (8) Budgeted variable manufacturing overhead | ||||
| (9) Total budgeted manufacturing overhead | ||||
| Additional Data | ||||
| (10) Standard variable manufacturing overhead allocated | $ 124,000 | |||
| (11) Standard fixed manufacturing overhead allocated | $ 86,800 | |||
| (12) Production-volume variance | $ 4,000 | F | ||
| (13) Variable manufacturing overhead spending variance | $ 5,000 | F | $ 2,282 | F |
| (14) Variable manufacturing overhead efficiency variance | $ 2,478 | F | ||
| (15) Fixed manufacturing overhead spending variance | - | - | ||
| (16) Actual Machine-hours used |
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