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Neato Company management currently uses a historical cost system to prepare internal performance reports. There were 200,000 units at the beginning of May. Normal volume
Neato Company management currently uses a historical cost system to prepare internal performance reports. There were 200,000 units at the beginning of May. Normal volume is 200,000 units and budgeted fixed costs are $300,000. Variable manufacturing cost per unit in April was $1.10 and in May was $1.00. Production in April was 300,000 units and in May it was 100,000 units. Actual and budgeted fixed overhead costs were the same in both months. Management uses a standard cost system. No variable cost variances existed in either April or May. There were no non-manufacturing costs for April and May. The company sold 100,000 units at a price of $5.00 per unit in both April and in May. Required: Fixed overhead rate Calculat the fixed overhead volun variance for April. Calculate the fixed overhead volume variance for May. SHOW WORK HERE FOR PART MARKS
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