Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Snow White Corporation manufactures inflatable lawn decorations for holiday decorating. Both variable and fixed manufacturing overhead are allocated using budgeted assembly hours. Budgeted assembly time
Snow White Corporation manufactures inflatable lawn decorations for holiday decorating. Both variable and fixed manufacturing overhead are allocated using budgeted assembly hours. Budgeted assembly time is 2 hours per unit. The following table shows the budgeted amounts and actual results related to overhead in November 2021. Actual results Static budget Number of inflatable decorations assembled & sold 220 150 Hours of assemble time 396 ? Variable manufacturing overhead cost per hour of ? 28 assembly time Variable manufacturing overhead costs $11,183 ? Fixed manufacturing overhead costs $15,540 $14,100 Required: 1. Prepare an analysis of all variable manufacturing overhead variances & fixed manufacturing overhead variances using the columns provided below. Variable Manufacturing Overhead Actual costs incurred Actual input * budgeted rate Flexible budget: Allocated: budgeted input Budgeted input allowed allowed for actual for actual output * output * budgeted rate budgeted rate Fixed Manufacturing Overhead Actual costs incurred Same budgeted lump sum regardless of output level Flexible budget Allocated: Budgeted input allowed for actual output * budgeted rate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started