M23

Compute the revenue, sales price, and the sales volume variances. Assume that Marathon Oil uses a standard cost system for each of its refineries. For the Texas City refinery, the monthly fixed overhead budget is $6,000,000 for a planned output of 2,000,000 barrels. For September, the actual fixed cost was $6,250,000 for 2,100,000 barrels. Determine the fixed overhead budget variance. If fixed overhead is applied on a per-barrel basis, determine the volume variance. Midstate Supply Company has three responsibility centers: sales, production, and administration. The following information pertains to the November activities of Midstate Supply