Fabric Company manufactures pillows. The 2020 operating budget was based on production of 25,000 pillows, with 0.25 machine-hours allowed per pillow. Budgeted variable overhead per hour was $35. Actual production for 2020 was 23,800 pillows using 5,900 machine-hours. Actual variable costs were $39 per machine-hour. Calculate the following: a. The budgeted variable overhead for 2020 b. The variable overhead spending variance c. The variable overhead efficiency variance

Fabric Company manufactures pillows. The 2020 operating budget was based on production of 25,000 pillows, with 0.25 machine-hours allowed per pillow. Budgeted variable overhead per hour was $35. Actual production for 2020 was 23,800 pillows using 5,900 machine-hours. Actual variable costs were $39 per machine-hour. Calculate the following: a. The budgeted variable overhead for 2020 b. The variable overhead spending variance c. The variable overhead efficiency variance

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 33P

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