Question
Use the following information of Alfred Industries. Standard manufacturing overhead based on normal monthly volume: Fixed ($303,100 20,000 units) $ 15.16 Variable ($100,000 20,000 units)
Use the following information of Alfred Industries.
| Standard manufacturing overhead based on normal monthly volume: | ||||||
| Fixed ($303,100 20,000 units) | $ | 15.16 | ||||
| Variable ($100,000 20,000 units) | 5.00 | $ | 20.16 | |||
| Units actually produced in current month | 18,000 | units | ||||
| Actual overhead costs incurred (including $300,000 fixed) | $ | 383,800 | ||||
Compute the overhead spending variance and the volume variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
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A Journey Into Auditing Culture
Authors: Grant Thornton United Kingdom, Susan Jex, Eddie J. Best
1st Edition
1634540565, 978-1634540568
