Question
Rutch Corporation manufactured 54,000 door knobs during September. The fixed-overhead cost allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September:
Rutch Corporation manufactured 54,000 door knobs during September. The fixed-overhead cost allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September:
Actual Static Budget
Production. 54,000 units 60,000 units
Machine-hours 985 hours 1,000 hours
Fixed overhead costs for March $48,400 $50,000
a)What is the flexible-budget amount for fixed overhead?
b)What is the amount of fixed overhead allocated to production?
c)What is the fixed overhead rate, or budget, variance?
d). What is the production-volume variance?
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