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Use the following to answer questions 26-29: Da...

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Use the following to answer questions 26-29: Data for the Rock Company are as follows: Budgeted Amounts: Machine Hours - 25 hours per unit Variable Overhead Rate - $.25 (25 cents) per machine hour Fixed Overhead - $800,000 Output ? 8,000 units Actual amounts: Variable overhead - $58,000 Fixed overhead - $810,000 Machine hours worked - 220,000 Actual output - 9,000 Units Budgeted machine hours per unit are used to allocate variable and fixed manufacturing overhead and a four-way variance analysis is used. 26. What is the variable overhead spending variance? A) $3,000 unfavorable B) $8,000 unfavorable C) $8,000 favorable D) None of the above (A, B or C). 27. What is the variable overhead efficiency variance? A) $1,250 unfavorable B) $1,250 favorable C) $1,750 unfavorable D) None of the above (A, B or C). 28. What is the fixed overhead budget variance? A) $70,000 favorable B) $10,000 unfavorable C) $10,000 favorable D) None of the above (A, B or C).

 

Paper#8381 | Written in 18-Jul-2015

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