Plantier Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

question 38

Essay

Plantier Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. The budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were 27,500 machine-hours. Data concerning the actual results for the most recent year appear below:
Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.

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Definitions:

Machiavellianism

A personality trait that involves manipulativeness, a lack of empathy, and a focus on self-interest and deception to achieve one's goals.

Personality Characteristic

A trait or quality that contributes to the unique emotional and behavioral features of an individual.

External Locus of Control

The belief that one's outcomes in life are determined by external forces or chance rather than personal actions.

Internal Locus of Control

A psychological concept referring to individuals who believe that they have control over the events and outcomes in their lives, as opposed to external forces determining their fate.