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The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead: Actual total factory
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead:
Actual total factory overhead cost | $24,000 |
Actual fixed overhead cost | $10,000 |
Budgeted fixed overhead cost | $11,000 |
Actual machine hours | 5,000 |
Standard machine hours for the units manufactured | 4,800 |
Denominator volumemachine hours | 5,500 |
Standard variable overhead rate per machine hour | $3 |
1. The variable overhead spending variance is:
2. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:
3. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:
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