The Following Selected Information Was Extracted from the Accounting Records

question 85

Essay

The following selected information was extracted from the accounting records of Austin, Inc.:
Planned manufacturing activity: 40,000 machine hours
Standard variable-overhead rate per machine hour: $16
Budgeted fixed overhead: $100,000
Variable-overhead spending variance: $92,000U
Variable-overhead efficiency variance: $102,000F
Fixed-overhead budget variance: $25,000U
Total actual overhead: $675,000
Required:
Determine the following: actual fixed overhead, actual variable overhead, actual machine hours worked, standard machine hours allowed for actual production, and the fixed-overhead volume variance.

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Definitions:

Experience

The knowledge or mastery of an event or subject gained through involvement in or exposure to it.

Coefficient of Determination

The coefficient of determination, often denoted as R^2, measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Gas Mileage

A measure of how far a vehicle can travel on a given amount of fuel, typically expressed in miles per gallon (mpg) or kilometers per liter (km/l).

Truck Speed

A measure referring to the velocity at which a truck is capable of traveling under specific conditions.