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:

Repressed Memories

Memories unintentionally hidden away as they are related to a high degree of stress or traumatic experiences.

Disprove Interpretations

The process of demonstrating that certain explanations or understandings of phenomena are incorrect, often through the use of empirical evidence or logical reasoning.

Expensive Process

Implies a process or operation that requires a significant amount of resources, such as time, money, or energy.

Operant Conditioning

A behavioral modification process in which the impact of an act is controlled by the distribution of rewards or the application of penalties.