Examlex
A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period:
-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?
Machine-Hours
A measure of production time, referring to the total hours that machinery is operated in the manufacturing process.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate manufacturing overhead to products based on a certain activity base.
Customizing Department
A specialized department in a company that modifies products to meet specific customer requirements or preferences.
Direct Labor-Hour
A direct labor-hour is a unit of measure representing the labor time directly involved in the production of goods.
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