Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipalities.Schenley's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides.Schenley's cost accounting team informs you that it allocates fixed overhead based on machine hours.This period production was budgeted at 375 slides.Budgeted and actual production data follows:

What is the fixed manufacturing overhead volume variance in this period?

Question

Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipalities.Schenley's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides.Schenley's cost accounting team informs you that it allocates fixed overhead based on machine hours.This period production was budgeted at 375 slides.Budgeted and actual production data follows:

What is the fixed manufacturing overhead volume variance in this period?

Quizplus · Accepted Answer

D)
Fixed MOH Volume variance = Budgeted fixed overhead - fixed overhead allocated
$1,320 F = ($11 × 6 × 375)- ($11 × 6 × 395)

Schenley Manufacturing Builds Playground Equipment That It Sells to Elementary