Plantier Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

Essay

Plantier Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.The budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were 27,500 machine-hours.Data concerning the actual results for the most recent year appear below:
Required:
a.Determine the fixed overhead budget variance for the year.
b.Determine the fixed overhead volume variance for the year.