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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 8
Fixed Overhead Rate; Denominator Level; Two-Variance Analysis Overhead information for Cran-Mar Company for October follows:
Required
1. What is the standard fixed factory overhead rate per machine-hour
2. What is the denominator activity level that was used to establish the fixed overhead application rate
3. Prepare a diagram such as the one in Exhibit 15.7 , Panel 3, to calculate the following overhead variances for October:
a. Total flexible-budget variance for factory overhead.
b. Fixed overhead production volume variance.
c. Total factory overhead cost variance.
Required
1. What is the standard fixed factory overhead rate per machine-hour
2. What is the denominator activity level that was used to establish the fixed overhead application rate
3. Prepare a diagram such as the one in Exhibit 15.7 , Panel 3, to calculate the following overhead variances for October:
a. Total flexible-budget variance for factory overhead.
b. Fixed overhead production volume variance.
c. Total factory overhead cost variance.
Explanation
Verified
Verified
(a) Determine the standard fixed factory...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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