Wangerin Corporation Applies Overhead to Products Based on Machine-Hours

question 94

Essay

Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,900 machine-hours. The budgeted fixed manufacturing overhead costs are $328,410. In April, the actual fixed manufacturing overhead costs were $334,640 and the standard machine-hours allowed for the actual output were 9,200 machine-hours.
Required:
a. Compute the budget variance for April.
b. Compute the volume variance for April.

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Definitions:

Automatic Routines

Repetitive actions or behaviors that are performed with little to no conscious thought, often becoming habitual.

Monozygotic Twins

are twins that originate from the splitting of a single fertilized egg, making them genetically identical.

Dizygotic Twins

Also known as fraternal twins, are siblings born at the same time but from separate eggs fertilized by different sperm.

Siblings

Brothers or sisters; individuals having one or both parents in common.