Everjoice Company Makes Clocks

question 106

Essay

Everjoice Company makes clocks.The budgeted fixed overhead costs for 2018 total $720,000.The company uses direct labour-hours for fixed overhead allocation and anticipates 240,000 hours during the year for 480,000 units.An equal number of units are budgeted for each month.During June, 42,000 clocks were produced and $63,000 were spent on fixed overhead.Required:
a.Determine the fixed overhead rate for 2018 based on units of input.
b.Determine the fixed overhead static-budget variance for June.
c.Determine the production-volume overhead variance for June.

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Definitions:

Withdrawal

Symptoms that occur upon the reduction or cessation of intake of a substance that one has become dependent on.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to learned responses.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, introduced by B.F. Skinner.

Observational Learning

The process of learning behaviors by watching the actions of others, and the outcomes of those actions.