What company are you referring to<span />
Answer:
total budgeted costs = $189,400
budgeted production = 1,000 units
standard rate = $189,400 / 1,000 = $189.40 per unit
total actual costs = $197,200
actual production = 1,120 units
actual rate = $197,200 / 1,120 = $176.07 per unit
- total fixed overhead variance = actual overhead costs - budgeted overhead costs = $197,200 - $189,400 = $7,800 unfavorable. The actual overhead expense was higher than the budgeted.
- controllable variance = (actual rate - standard rate) x actual units = ($176.07 - $189.40) x 1,120 units = -$14,929.60 favorable. The actual overhead rate was lower than the standard rate, that is why the variance is positive.
- volume variance = (standard activity - actual activity) x standard rate = (1,000 - 1,120) x $189.40 = -1,120 x $189.40 = -$212,128 favorable. More units where produced than budgeted, that is why the variance is positive.
There may be presence of challenge in an individual or a
company when an action is triggered such as having to trigger unwarranted by
facts in which will rise challenge and rivalries among the group or in the
company itself.
Plant layout is important for any manufacturing company. It refers to a planned design for the arrangement of all the physical facilities that might be required in the manufacturing process of any product. The physical facilities such as equipments, tools should be arranged in such a way that these are easily available and flow of raw materials take place in the quickest and lowest rates.
A company for the manufacture of locomotives is likely to use Fixed Position Layout in its manufacturing process. In fixed position layout the product which is being produced is fixed at one loaction.
