The Most Recent Operating Budget for Gilligan Company Is Based

question 20

Essay

The most recent operating budget for Gilligan 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 overhead report. Do not prepare the report.

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Definitions:

Retroactive Interference

A memory phenomenon where newly learned information interferes with the recall of previously learned information.

Cue-dependent Forgetting

A type of memory loss where the inability to recall information is due to missing cues or triggers that were present at the time the memory was encoded.

Decay

The natural process of decomposition or decline in quality, strength, or vigor over time.

Encoding Failure

A situation in which information fails to be stored into long-term memory, leading to the inability to recall it later.