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Benjamin Inc

question 3

Essay

Benjamin Inc. uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets. Standard labor input is 2 hours per unit. The variable overhead rate is $8 per hour; fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets. During August, Benjamin Inc. paid its workers $161,670 for 16,800 hours. Actual variable overhead incurred totaled $133,560, actual fixed overhead totaled $98,956. Benjamin Inc. produced 8,600 widgets during August. Calculate the:
a. variable overhead rate variance.
b. variable overhead efficiency variance.
c. fixed overhead spending variance.


Definitions:

Bad-News Message

Communication designed to relay unfavorable or disappointing information in a sensitive and understanding manner.

Anticipate Future Relations

The act of predicting and preparing for potential future interactions with others.

Resale

Resale refers to the act of selling something previously bought, often used goods, to another buyer.

Negative-News Message

A communication that conveys disappointing or unfavorable information to the recipient.

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