The most recent operating budget for Skipper Company is based on production of 42,000 units with 1.0 machine hour allowed per unit.Variable manufacturing overhead is anticipated to be $20 per unit.Actual production was 45,000 units using 40,000 machine hours.Actual variable cost was $725,000.
Required:
Compute the commonly used variances for a variable over?head report.Do not prepare the report.

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The Answer of The most recent operating budget for Skipper Company is based on production of 42,000 units with 1.0 machine hour allowed per unit.Variable manufacturing overhead is anticipated to be $20 per unit.Actual production was 45,000 units using 40,000 machine hours.Actual variable cost was $725,000.
Required:
Compute the commonly used variances for a variable over?head report.Do not prepare the report.

The Most Recent Operating Budget for Skipper Company Is Based