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:

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That's-Not-All Technique

A sales strategy where an initial offer is improved upon before a decision is made in order to make it more appealing.