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Sphinxa [80]
3 years ago
5

Auditory Company, which applies overhead to production on the basis of machine hours, reported the following data for the period

just ended: Actual units produced: 13,000 Actual fixed overhead incurred: $742,000 Standard fixed overhead rate: $15 per hour Budgeted fixed overhead: $720,000 Planned level of machine-hour activity: 48,000 If Auditory estimates four hours to manufacture a completed unit, the company's fixed-overhead budget variance would be: $60,000 unfavorable. $22,000 unfavorable. $60,000 favorable. None of the answers is correct. $22,000 favorable.
Business
1 answer:
pishuonlain [190]3 years ago
5 0

Answer:

$22,000 unfavorable

Explanation:

Auditory Company

Actual units produced: 13,000  

Actual fixed overhead incurred: $742,000  

Standard fixed overhead rate: $15 per hour  

Budgeted fixed overhead: $720,000  

Planned level of machine-hour activity: 48,000  

 

Fixed Budget Overhead Variance = Actual Fixed Overhead - Budgeted Fixed Overhead

Fixed Budget Overhead Variance =  $742,000 -$720,000 = $ 22,000 unfavorable

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Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual reg
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6 0
1 year ago
United Disposal, Inc., operates a hazardous waste disposal site that accepts waste transported by Ace Trucking Company from Gene
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United Disposal, General Manufacturing Corporation, Ace Trucking Company, and/or Investment Properties.

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8 0
2 years ago
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.6
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Answer:

b. 18,602 units.

Explanation:

First, we need to use last year's information to determine last year's fixed costs.

Price (P1) = $7.68

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At the break-even point, net income is zero and the fixed cost can be found by:

N=0 = n_1*(P_1-VC_1) -FC_1\\0=21,800*(\$7.68-\$2.25) - FC_1\\FC = \$118,374

With information from last, information for the current year can be determined:

Price (P2) = $10.00

Variable costs (VC2) = $2.25 x 1.3333 = $3.00

Fixed cost (FC2) = $118,374 x 1.10 = $130,211.4

The number of units required to break even is:

N=0 = n_2*(P_2-VC_2) -FC_2\\0=n_2*(\$10-\$3) - \$130,211.4\\n_2 = 18,601.63\ units

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