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Citrus2011 [14]
3 years ago
7

Radon Corporation manufactured 33,000 grooming kits for horses during March. The company uses machine hour to allocate fixed man

ufacturing overhead. The following fixed overhead data pertain to March:
Actual Static Budget
Production 33,000 units 30,000 units
Machine-hours 6,600 hours 6,000 hours
Fixed Overhead Costs for March $153,000 $144,000
1. What is the fixed overhead production-volume variance? (HINT: The answer is $14,400 favorable, but I need work to support this)

2. What is the fixed overhead spending variance? (HINT: The answer is $9,000 unfavorable, but I need work to support this)
Business
1 answer:
Bumek [7]3 years ago
6 0

Answer:

1) The fixed overhead production-volume variance is $14400 favourable.

2) The fixed overhead spending variance is $9000 unfavourable.

Explanation:

1)

Fixed overhead production volume variance

= amount applied * amount budgeted

= 144000/30000

= 4.80 per unit

= 4.80*33000 - 144000

= $14400 favourable

Therefore, The fixed overhead production-volume variance is $14400 favourable.

2)

fixed overhead spending variance

= actual overhead - budgeted overhead

= 153000 - 144000

= $9000 unfavourable

Therefore, The fixed overhead spending variance is $9000 unfavourable.

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Answer:

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Explanation:

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8 0
3 years ago
A company has a process that results in 26000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
Tom [10]

Answer:

Sell now, the company will be better off by $18200

Explanation:

The computation is shown below:

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8 0
3 years ago
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defon

Answer:

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3 years ago
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Lelechka [254]
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3 years ago
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Answer:

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Explanation:

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Option 1:

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Option 2:

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It is more profitable to sell the units as-is.

7 0
3 years ago
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