LampLight Industries Gathered the Following Information for the Month of July

question 40

Essay

LampLight Industries gathered the following information for the month of July:
Overhead flexible budget:
LampLight actually produced 14,000 units in 17,500 machine hours. Total actual overhead cost of $85,500 consisted of $35,000 variable costs and $50,500 fixed costs. The standard variable and fixed overhead rates are based on a master (static)budget of 15,000 units. Assume the allocation base for fixed overhead costs is the number of units.
A. Compute the total manufacturing overhead cost variance.
B. Compute the overhead flexible budget variance.
C. Compute the production volume variance.

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Definitions:

Post-Merger Firm

A company that results from the combination of two or more companies into one entity following a merger.

Cash Acquisition

A method of acquiring another company by purchasing its assets or stock with cash payments.

Synergy Value

The additional value created by the combination of two or more companies or assets, often resulting in cost savings, enhanced revenues, or improved market position.

Incremental Value

The additional value generated from a specific decision or investment, compared to a baseline scenario.