Regency Corp

question 27

Essay

Regency Corp.uses a standard cost system to account for the costs of its one product.Fixed overhead is applied to production at a rate of $27.50 per unit,based on budgeted production of 2,500 per month.During November,Regency produced 2,300 units.Fixed overhead incurred totaled $70,310.Calculate the:
a.fixed overhead spending variance.
b.fixed overhead volume variance.
c.over- or underapplied fixed overhead.

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Definitions:

Test Statistic

A number derived from sample information, employed in hypothesis testing to decide if the null hypothesis should be discarded.

Sample

A subset chosen from a larger population for the purpose of investigation.

Normal Probability Plot

A graphical technique for assessing whether or not a data set is approximately normally distributed, utilizing a plot of sorted values versus their expected values under normality.

Residuals

Differences between observed and predicted values of data in statistical models, indicating the error in predictions.