GrayCell is in their first year of operations. GrayCell budgeted $40,000 of fixed manufacturing overhead, which they allocated over an activity base of 1,000 units. They actually produced 945 units, actually incurred $43,233 in fixed manufacturing overhead, and actually sold 900 Calculate the difference between absorption and variable income for GrayCell. If absorption income is higher than variable income, write your answer as a positive number. If absorption income is lower than variable income, write your answer as a negative number. -800

GrayCell is in their first year of operations. GrayCell budgeted $40,000 of fixed manufacturing overhead, which they allocated over an activity base of 1,000 units. They actually produced 945 units, actually incurred $43,233 in fixed manufacturing overhead, and actually sold 900 Calculate the difference between absorption and variable income for GrayCell. If absorption income is higher than variable income, write your answer as a positive number. If absorption income is lower than variable income, write your answer as a negative number. -800

Name: savitaben GrayCell is in their first year of operations.GrayCell budge
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Description: savitaben GrayCell is in their first year of operations.GrayCell budgeted $40,000 of fixed manufacturing overhead, which they allocated over an activity base of 1,000units. They actually produced 945 units, actually incurred $43,233 in fixed manufact

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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savitaben

GrayCell is in their first year of operations.
GrayCell budgeted $40,000 of fixed manufacturing overhead, which they allocated over an activity base of 1,000
units. They actually produced 945 units, actually incurred $43,233 in fixed manufacturing overhead, and actually sold
900
Calculate the difference between absorption and variable income for GrayCell. If absorption income is higher than
variable income, write your answer as a positive number. If absorption income is lower than variable income, write your
answer as a negative number.
-800

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