Question
Selected operating information on three different companies for a recent year is given below: Company A B C Full-capacity machine-hours 25,000 14,000 15,000 Budgeted machine-hours*
Selected operating information on three different companies for a recent year is given below:
| Company | |||
| A | B | C | |
| Full-capacity machine-hours | 25,000 | 14,000 | 15,000 |
| Budgeted machine-hours* | 24,000 | 12,800 | 15,000 |
| Actual machine-hours | 24,000 | 13,600 | 14,000 |
| Standard machine-hours allowed for actual production | 24,500 | 12,400 | 15,000 |
*Denominator activity for computing the predetermined overhead rate.
Required:
For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.))
Company A=
Company B=
Company C=
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
