Rhine Incorporated makes a single product--a critical part used in commercial airline seats. 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. Data concerning 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.
Definitions:
Small-batch Production
A production process characterized by the manufacturing of small quantities of goods tailored to specific customer needs or market demands.
Customized Saddles
Specially designed and made saddles that are tailored to fit the specific measurements and requirements of an individual rider or horse.
Cellular Layouts
Refers to the arrangement of machinery and equipment in closely linked groups or cells that process parts in a workpiece flow, optimizing efficiency and minimizing movement.
Long-linked Technology
Long-linked technology refers to a sequential process technology in which the output of one operation is the input for the next, often seen in manufacturing and assembly lines.
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