Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,900 machine-hours. The budgeted fixed manufacturing overhead costs are $328,410. In April, the actual fixed manufacturing overhead costs were $334,640 and the standard machine-hours allowed for the actual output were 9,200 machine-hours.
Required:
a. Compute the budget variance for April.
b. Compute the volume variance for April.

Question

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The Answer of Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 8,900 machine-hours. The budgeted fixed manufacturing overhead costs are $328,410. In April, the actual fixed manufacturing overhead costs were $334,640 and the standard machine-hours allowed for the actual output were 9,200 machine-hours.
Required:
a. Compute the budget variance for April.
b. Compute the volume variance for April.

Wangerin Corporation Applies Overhead to Products Based on Machine-Hours