Examlex

Solved

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!


Definitions:

Jeremy Bentham

An English philosopher, jurist, and social reformer regarded as the founder of modern utilitarianism.

Consequences

The outcomes, effects, or results that naturally or logically follow from an action or condition.

Epicurus

An ancient Greek philosopher who founded Epicureanism, a philosophy advocating for simplicity and seeking pleasure through the avoidance of pain as the key to happiness.

Moral Theories

Philosophical frameworks designed to guide ethical decision-making by defining principles of right and wrong behavior.

Related Questions