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LiChan LiChan
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8 years ago
The Livonia Manufacturing Company applies fixed manufacturing overhead at the rate of $3.45 per direct labor hour. Fixed manufacturing overhead is budgeted to be $207,000 per month. The direct labor efficiency standard is 3 hours per finished unit. Budgeted production for the month is 20,000 and the company actually produced 18,900 units. Actual fixed manufacturing overhead cost incurred was $212,735.

REQUIRED:
1.)   Determine the fixed overhead budget variance.
2.)   Determine the fixed manufacturing overhead volume variance.
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
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hol23hol23
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LiChan Author
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8 years ago
Was looking for this exact answer, thanks
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