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:

Algebraic Expression

A mathematical phrase combining numbers, variables, and operation symbols to represent a specific value or set of values.

Evaluate

To compute or find the value of a mathematical expression or function through substitution of known values.

Verbal Phrase

A phrase that is used to express an action or a state of being, often translated into a mathematical expression.

Algebraic Expression

A mathematical phrase that can include numbers, variables, and operation symbols, but does not contain an equal sign.