Circle Corporation's President Would Like to Have an Analysis of Variable

Essay

Circle Corporation's president would like to have an analysis of variable and fixed manufacturing overhead costs budgeted and incurred for the month of August. Three machine hours per unit is the standard allowed for machine hours and 15,500 units were projected to be produced in August. Budgeted variable and fixed manufacturing overhead costs for the month were $93,000 and $186,000, respectively. During August, 49,000 machine hours were actually used to produce 17,500 units of product. Actual variable and fixed manufacturing overhead for the month were $112,000 and $194,000, respectively.