Faessler Corporation Applies Overhead to Products Based on Machine-Hours

question 69

Essay

Faessler Corporation applies overhead to products based on machine-hours. The denominator level of activity is 6,500 machine-hours. The budgeted fixed manufacturing overhead costs are $242,450. In July, the actual fixed manufacturing overhead costs were $242,490 and the standard machine-hours allowed for the actual output were 7,000 machine-hours.
Required:
a. Compute the budget variance for July. Show your work!
b. Compute the volume variance for July. Show your work!

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Definitions:

Hypodermis

The innermost and thickest layer of the skin, which consists of fat and connective tissues that house larger blood vessels and nerves, providing insulation and support to the skin.

ABCDE Rule

A guideline used for detecting skin cancer, focusing on Asymmetry, Border irregularity, Color variation, Diameter, and Evolving nature of skin lesions.

Melanoma

A serious form of skin cancer that arises from melanocytes, cells that produce the pigment melanin, which can spread to other parts of the body if not treated early.

Basal Cell Carcinoma

A type of skin cancer that arises from the basal cells, which are small, round cells found in the lower part of the epidermis. It is usually caused by long-term exposure to UV radiation from the sun.