Question
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended:
Standard variable-overhead rate per hour: $7.90
Standard fixed-overhead rate per hour: $13.20
Planned activity during the period: 26,000 machine hours
Actual production: 15,700 finished units
Machine-hour standard: Two completed units per machine hour
Actual variable overhead: $202,920
Actual total overhead: $558,030
Actual machine hours worked: 26,700
- What is the budgeted fixed overhead for the year.
- What is the variable-overhead spending variance.
- What is the company's fixed-overhead volume variance.
4-a.How is Fraser spending more or less than anticipated for fixed overhead? How much?
4-b.What was the difference in actual and anticipated overhead?
5.Was variable overhead underapplied or overapplied during the year? By how much?
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