Bike Pedals Manufactures Bicycle Seats

question 88

Essay

Bike Pedals manufactures bicycle seats. The company budgeted to manufacture 25,000 seats in April, with 0.05 standard machine hours per seat. Total variable factory overhead was budgeted at $30,000 for April. During April, the company manufactured 30,000 seats using 1,600 machine hours. It incurred $34,000 of variable factory overhead (VOH) costs.
Required:
Determine each of the following variances. Round all answers to nearest dollar.
1. Variable overhead spending variance.
2. Variable overhead efficiency variance.
3. Variable overhead flexible-budget variance.

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Definitions:

Training Phases

Distinct periods or stages in a training program, each with specific goals and activities.

Skill Acquisition

The process through which a person learns and develops a new skill, often through practice and experience.

Generalization

The process of applying findings or conclusions from specific instances to broader contexts or populations.

Educational

Educational pertains to the process of teaching and learning, often within schools, universities, or other formal institutions.