Rundle Company established a predetermined fixed overhead cost rate of $28 per unit of product. The company planned to make 7,600 units of product but actually produced only 7,300 units. Actual fixed overhead costs were $220,900. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and Indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" If there is no effect (I.e., zero variance). a. Total spending variance b. Total volume variance

Rundle Company established a predetermined fixed overhead cost rate of $28 per unit of product. The company planned to make 7,600 units of product but actually produced only 7,300 units. Actual fixed overhead costs were $220,900. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and Indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" If there is no effect (I.e., zero variance). a. Total spending variance b. Total volume variance

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Description: Rundle Company established a predetermined fixed overhead cost rate of $28 per unit of product. The company planned to make7,600 units of product but actually produced only 7,300 units. Actual fixed overhead costs were $220,900.Requireda. Determine

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 14CE: Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the...

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Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?