Windup Time Company Makes Clocks

question 61

Essay

Windup Time Company makes clocks.The 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 was 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.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Experimenter

A person who conducts scientific tests and trials to explore hypotheses and examine the effects of variables.

Manipulated

Altered or controlled in a skillful or sometimes deceitful manner, often to achieve a specific outcome.

Unified Dynamic Structure

A system or organization in which different components work together in a coordinated and dynamic manner to achieve common goals.

Assumption

A belief or statement taken for granted without proof, often used as a starting point for further reasoning or argument.