The Most Recent Operating Budget for Skipper Company Is Based

question 77

Essay

The most recent operating budget for Skipper Company is based on production of 42,000 units with 1.0 machine hour allowed per unit.Variable manufacturing overhead is anticipated to be $20 per unit.Actual production was 45,000 units using 40,000 machine hours.Actual variable cost was $725,000.
Required:
Compute the commonly used variances for a variable over?head report.Do not prepare the report.

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Definitions:

Consequences

Circumstances that change the environment shortly after a behavior is displayed and that affect the future performance of the behavior by serving to increase, decrease, or maintain it.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Behavior

The actions or reactions of an organism, often in relation to the environment, including the mannerisms and actions of individuals.

Subjective Terms

Refers to language or descriptions that are influenced by personal feelings, opinions, or interpretations rather than objective facts.