Alabama Company's overhead cost information - 9863

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umer

umer

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  • Posted on: Thu 17 May, 2012
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Request Description

Alabama Company's overhead cost information is given below: 

 

Standard applied overhead     $322,000 

 

Budgeted overhead based on standard machine hours allowed     $332,000 

 

Budgeted overhead based on actual machine hours used     $310,000 

 

Actual overhead     $346,000 

 

 

Required: 

 

     a.     Compute the total overhead variance. 

 

     b.     Calculate the flexible budget variance. 

 

     c.     Determine the production volume variance. 

 

 
Solution Description

Alabama Company's overhead cost information is given below:

Standard applied overhead     $322,000

Budgeted overhead based on standard machine hours allowed     $332,000

Budgeted overhead based on actual machine hours used     $310,000

Actual overhead     $346,000


Req