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:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.

Experimental Group

In research, this group is exposed to the intervention or treatment being tested, in contrast to the control group.

Homework

Assignments given to students by their teachers to be completed outside of class aimed at reinforcing learning.

Double-blind Studies

Research designs in which neither the participants nor the experimenters know who is receiving a particular treatment, reducing biases.