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ID: 2541883 • Letter: C

Question

Connect .> C Secure | https://newconnect.mheducation.com/flow/connect.html : Apps P Haiku Drive CH 10A HW 6 Saved Help Save & Exit Submit Check my work 9 Exercise 10A-4 Fixed Overhead Variances [LO10-4) Selected operating information on three different companies for a recent year is given below: points Full-capacity machine-hours Budgeted machine-hours* Actual machine-hours Standard machine-hours allowed for actual 18,000 20.800 eBook Print References 18,020 9,080 17,080 20,e00 9,88 17,82019,e08 9,580 16,00 20,808 Denominator activity for computing the predetermined overhead rate. Required For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each variance by electing "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)) Company A Company B Company C Next > 7:37 PM O Type here to search @ 3,12/201. ^

Explanation / Answer

Volume Variance = Standard hours - Budgeted Hours
A = 9,500 - 9,000 = 500 F
B = 16,000 - 17,000 = 1,000 U
C = 20,000 - 20,000 = None    

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