Wangerin Corporation applies overhead to products based on machine-hours.The denominator level of activity is 6,900 machine-hours.The budgeted fixed manufacturing overhead costs are $240,810.In April, the actual fixed manufacturing overhead costs were $245,640 and the standard machine-hours allowed for the actual output were 7,200 machine-hours.
Required:
a.Compute the budget variance for April.Show your work!
b.Compute the volume variance for April.Show your work!

Question

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The Answer of Wangerin Corporation applies overhead to products based on machine-hours.The denominator level of activity is 6,900 machine-hours.The budgeted fixed manufacturing overhead costs are $240,810.In April, the actual fixed manufacturing overhead costs were $245,640 and the standard machine-hours allowed for the actual output were 7,200 machine-hours.
Required:
a.Compute the budget variance for April.Show your work!
b.Compute the volume variance for April.Show your work!

Wangerin Corporation Applies Overhead to Products Based on Machine-Hours