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Purdue Inc., manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent

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Purdue Inc., manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent scenario given, indicate whether each of the manufacturing variances will be favorable or unfavorable or, in case of insufficient information, indicate "CBD" (cannot be determined).

Purdue Inc., manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent scenario given, indicate whether each of the manufacturing variances will be favorable or unfavorable or, in case of insufficient information, indicate "CBD (cannot be determined). Fixed Varlable Fixed Variable Overhead Overhead Overhead Production- Spending Efficiency Spending Variance Overhead Volume Scenario Variance Variance Variance Production output is 6% less than budgeted, and actual fixed manufacturing overhead costs are 5% less than budgeted Production output is 13% less than budgeted; actual machine-hours are 7% more than budgeted Production output is 10% less than budgeted Actual machine-hours are 20% less than flexible-budget machine-hours Relative to the flexible budget, actual machine-hours are 15% greater, and actual variable manufacturing overhead costs are 20% greater Purdue Inc., manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent scenario given, indicate whether each of the manufacturing variances will be favorable or unfavorable or, in case of insufficient information, indicate "CBD (cannot be determined). Fixed Varlable Fixed Variable Overhead Overhead Overhead Production- Spending Efficiency Spending Variance Overhead Volume Scenario Variance Variance Variance Production output is 6% less than budgeted, and actual fixed manufacturing overhead costs are 5% less than budgeted Production output is 13% less than budgeted; actual machine-hours are 7% more than budgeted Production output is 10% less than budgeted Actual machine-hours are 20% less than flexible-budget machine-hours Relative to the flexible budget, actual machine-hours are 15% greater, and actual variable manufacturing overhead costs are 20% greater

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