=+A13-9 Variance interpretation Sound Sensation Inc. is a small manufacturer of electronic musical instruments. The plant man¬

ager received the following variable factory overhead report for the period:

Supplies Power and light Indirect factory wages Total Budgeted Variable Factory Overhead at Actual _Actual Production

$28,000 $26,520 35,000 33,990 26,112 20,400

$89,112 $80,910 Actual units produced: 10,200 (85% of practical capacity)

Budgeting and Standard Cost Systems 533