Glandorf Controls Produces Furnaces at Several Plants

Essay

Glandorf Controls produces furnaces at several plants.The business is seasonal and cyclical in nature.The accountant for the Marion plant uses flexible budgeting to help the plant management control operations.Data for Marion follows:
a.Compute the fixed and variable factory overhead application rates per unit of production.
b.Assuming Glandorf uses the two-variance method of analyzing factory overhead,compute the two overhead variances.
c.Prepare a flexible budget performance report for January comparing actual and budgeted costs of all cost elements for the actual activity for the month.
d.Prove the factory overhead budget variance from the above report.