rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $$19,800$

Read the requirements. calculate the budgeted fixed overhead rate, what is the production$-$volume variance? Indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Begin by determining the formula then computing the fixed overhead rate per direct labor hour. $($Round the fixed overhead rate to the nearest cent.$)$

Budgeted fixed overhead costs $1+==$ Fixed overhead rate

Next, complete the following table.

Calculate the fixed overhead spending variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Spending variance

Calculate the fixed overhead production$-$volume variance and indicate whether it is favorable $(F)$ or unfavorable $(U).$

Production$-$volume variance

Select all that apply. capacity and sells at a lower price than if it sells at a higher price at some level below capacity. Divot Down has no control. the production$-$volume variance calculated in requirement $2.$ What does each concept messure?

Begin by calcutating the statio$-$budget operating income for March.

Revenues

Variable costs

Fixed overhead costs

Static$-$budget operating income

Next, calculate the flexible$-$budget operating income for March.

Revenues

Variable costs

Fixed overhead costs

Flexible$-$budget operating income

Variable costs

Fixed overhead costs

Flexible$-$budget operating income

Compute the sales$-$volume variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Sales$-$volume variance

Now, seiect the formula and enter the amounts to calculate the operating$-$income volume triance.

Static$-$budaet operatina income

Operating income based on bdgt profit per unit

Operating$-$income

Static$-$budaet operatina income

$$ Operating income based on bdgt profit per unit volume variance $-=$

Reconcile the sales$-$volume variance with the production$-$volume variance calculated in requirement $2.$

Sales$-$volume variance

What does each concept measure?

The operating$-$income volume variance assumes that in fixed costs would be saved if production and sales volume decreased by units.