Dull Corporation Applies Overhead to Products Based on Machine-Hours

question 75

Essay

Dull Corporation applies overhead to products based on machine-hours.The denominator level of activity is 8,600 machine-hours.The budgeted fixed manufacturing overhead costs are $286,380.In October,the actual fixed manufacturing overhead costs were $274,330 and the standard machine-hours allowed for the actual output were 8,400 machine-hours.
Required:
a.Compute the budget variance for October.Show your work!
b.Compute the volume variance for October.Show your work!

---

Definitions:

Dominant-Recessive Genes Principle

A genetic principle in which the dominant allele masks the effect of a recessive allele in heterozygous pairs.

Dominant Gene

A genetic sequence that overpowers and determines the expression of a trait over another allele.

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical, being masked by the effects of a dominant gene when paired with it.

Down Syndrome

A genetic disorder caused by the presence of all or part of an extra 21st chromosome, characterized by physical growth delays, characteristic facial features, and varying degrees of intellectual disability.