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Spindle Corp manufactures chairs. For 2020, the company expects fixed overhead costs of $229,500. Spindle uses machine-hours to allocate fixed overhead costs and anticipates 6,750
Spindle Corp manufactures chairs. For 2020, the company expects fixed overhead costs of $229,500. Spindle uses machine-hours to allocate fixed overhead costs and anticipates 6,750 hours during the year to manufacture 27,000 chairs. During 2020, Homespun manufactured 26,000 chairs and spent $226,000 on fixed overhead costs.
Caluculate
- The fixed overhead rate for 2020 (fixed overhead rate per hour)
- The fixed overhead spending variance for 2020 (indicate favorable or unfavorable)
- The production volume variance for 2020 (indicate favorable or unfavorable)
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