Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,700 machine-hours. The budgeted fixed manufacturing overhead costs are $274,890. In April, the actual fixed manufacturing overhead costs were $280,280 and the standard machine-hours allowed for the actual output were 8,000 machine-hours.

TB Problem Qu. 10A-160 Wangerin Corporation applies overhead. Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,700 machine- hours. The budgeted fixed manufacturing overhead costs are $274,890. In April, the actual fixed manufacturing overhead costs were $280,280 and the standard machine-hours allowed for the actual output were 8,000 machine-hours. Required a. Compute the budget variance for April. b. Compute the volume variance for April (Input all amounts as positive values.) a. Budget variance b. Volume variance