ABC Manufacturing uses a standard costing system. It applies overhead to products based on machine hours. Data for the year are as follows:
|
Total budgeted fixed overhead Don't use plagiarized sources. Get Your Custom Essay on
compute the fixed portion of the predetermined overhead rate for the year 445908
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|
$300,000 |
|
Actual fixed overhead costs incurred |
$275,000 |
|
Total budgeted (denominator) machine hours |
50,000 |
|
Actual machine hours |
54,000 |
|
Standard machine hours allowed for the actual output |
52,000 |
Required: Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed overhead budget and volume variances.
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