DeNozio Enterprises Gathered the Following Information for the Month of July

question 42

Essay

DeNozio Enterprises gathered the following information for the month of July:
Overhead flexible budget:
Gordon actually produced 13,000 units in 16,400 machine hours. Total actual overhead cost of $82,000 consisted of $33,000 variable costs and $49,000 fixed costs. The standard variable and fixed overhead rates are based on a master (static) budget of 12,000 units. Assume the allocation base for fixed overhead costs is the number of units.
Required:
1. Compute the total manufacturing overhead cost variance.
2. Compute the variable overhead flexible budget variance.
3. Compute the fixed overhead budget variance.
4. Compute the production volume variance.

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Definitions:

Voters

Individuals eligible to participate in the election process to select public officials.

Representative Democracy

A form of democracy in which citizens elect officials to represent them in making laws and policy decisions on their behalf, rather than voting on legislation directly.

Majority Rule

A decision-making process that follows the preference of more than half of the members in a group.