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Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipal

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Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipal

Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Schenley's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Schenley's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 375 slides. Budgeted and actual production data follows:

Standard fixed overhead cost per machine hour   $11
Standard machine hours per slide   6

Actual production   395
Actual fixed overhead cost   $27,500

What is the fixed manufacturing overhead volume variance in this period?
A) $1,320 unfavorable
B) $2,750 unfavorable
C) $1,320 favorable
D) $2,750 favorable

Textbook

Managerial Accounting

Edition: 4^th

Author: Braun

Read 1636 times

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