Question
Maxima Corp. uses a standard cost system with machine hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The
Maxima Corp. uses a standard cost system with machine hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The following information relates to production for last year:
Variable | Fixed | |
Total budgeted overhead (at the denominator level of activity) | $14,000 | ? |
Total applied overhead | $15,400 | $28,600 |
Total actual overhead | $15,700 | $31,800 |
The actual machine hours incurred were 2,300. VMOH Efficiency Variance was $700 Unfavorable.
What was Maxima's FMOH Volume Variance?
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
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