Wangerin Corporation applies overhead to products based on machine-hours. The de

Question

Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,000 machine- hours. The budgeted fixed manufacturing overhead costs are $288,000. In April, the actual fixed manufacturing overhead costs were $293,600 and the standard machine-hours allowed for the actual output were 8,300 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

Explanation / Answer

Ans a Budget Variance $5,600 Unfavorable Actual-Budgeted Fixed overhead 293600-288000 ans b Volume variance 10800 Favorable Bedgeted Fixed Manufacturing overhead rate*(Denominator hour-Standard hoursallowed) 36*(8000-8300) Bedgeted Fixed Manufacturing overhead rate 36 288000/8000 If any doubt please comment. If satisfied you can rate

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