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rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $ 1 9 , 8 0 0 Read the requirements. calculate the budgeted fixed
rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $
Read the requirements. calculate the budgeted fixed overhead rate, what is the productionvolume 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 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 productionvolume variance and indicate whether it is favorable or unfavorable
Productionvolume 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 productionvolume variance calculated in requirement What does each concept messure?
Begin by calcutating the statiobudget operating income for March.
Revenues
Variable costs
Fixed overhead costs
Staticbudget operating income
Next, calculate the flexiblebudget operating income for March.
Revenues
Variable costs
Fixed overhead costs
Flexiblebudget operating income
Variable costs
Fixed overhead costs
Flexiblebudget operating income
Compute the salesvolume variance and indicate whether it is favorable F or unfavorable U
Salesvolume variance
Now, seiect the formula and enter the amounts to calculate the operatingincome volume triance.
Staticbudaet operatina income
Operating income based on bdgt profit per unit
Operatingincome
Staticbudaet operatina income
Operating income based on bdgt profit per unit volume variance
Reconcile the salesvolume variance with the productionvolume variance calculated in requirement
Salesvolume variance
What does each concept measure?
The operatingincome volume variance assumes that in fixed costs would be saved if production and sales volume decreased by units.
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