Company A B C Full-capacity machine-hours 30,000 19,000 20,000 Budgeted machine-
ID: 2415243 • Letter: C
Question
Company
A
B
C
Full-capacity machine-hours
30,000
19,000
20,000
Budgeted machine-hours*
29,000
18,000
20,000
Actual machine-hours
29,000
18,800
19,000
Standard machine-hours allowed for actual production
29,200
17,500
20,000
*Denominator activity for computing the predetermined overhead rate.
For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.))
Selected operating information on three different companies for a recent year is given below:Explanation / Answer
Company A Company B Company C Actual machine-hours 29,000 18,800 19,000 Standard machine-hours allowed for actual production 29,200 17,500 20000 variance 200 -1300 1000 F U F
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