Modine Corporation Has Provided the Following Data for September Required:
A

question 31

Essay

Modine Corporation has provided the following data for September. $\begin{array}{llcc} \text { Denominator level of activity........................ } &1,600&\text { machine-hours}\\ \text {Budgeted fixed manufacturing overhead costs } &\$2,400\\ \text {Fixed portion of the predetermined overhead } &\\ \text {rate................................................................ } &\$26.50&\text { per machine-hour}\\ \text { Actual level of activity.................................. } &1,700&\text { machine-hours}\\ \text { Standard machine-hours allowed for the actual } &\\ \text { output .........................................................} &2,000&\text { machine-hours}\\ \text { Actual fixed manufacturing overhead costs....} &\$41,740\\\end{array}$
Required:
a.Compute the budget variance for September.Show your work!
b.Compute the volume variance for September.Show your work!

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Definitions:

Excess Capacity

A situation where a company can produce more goods than demanded, often leading to underutilized resources or a need for strategic adjustments.

Competitive Bidding

A procurement process where suppliers submit proposals or bids to win a contract, often leading to lower prices through competition.

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Seasonal Variation

Fluctuations in business activity, sales, or other economic indicators that occur at regular intervals based on the season.