Selected operating information on three different companies for a recent year is given below: Company B Full-capacity machine-hours Budgeted machine-hours" Actual machine-hours" Standard machine-hours allowed for actual 31,000 30,000 30,000 30,500 Company A Company B Company C 20,000 19,000 700 production 18,600 21,000 "Denominator activity for computing the predetermined overhead rate. F U None 21,000 21,000 20,000 Required: For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each varias selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.))

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Selected operating information on three different companies for a recent year is given below:
Company
B
Full-capacity machine-hours
Budgeted machine-hours*
Actual machine-hours"
Standard machine-hours allowed for actual
Company A
Company B
Company C
A
31,000
30,000
30,000
30,500
production
18,600
"Denominator activity for computing the predetermined overhead rate.
F
U
20,000
19,000
700
None
21,000
21,000
20,000
Required:
For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each variar
selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.))
21,000
Transcribed Image Text:Selected operating information on three different companies for a recent year is given below: Company B Full-capacity machine-hours Budgeted machine-hours* Actual machine-hours" Standard machine-hours allowed for actual Company A Company B Company C A 31,000 30,000 30,000 30,500 production 18,600 "Denominator activity for computing the predetermined overhead rate. F U 20,000 19,000 700 None 21,000 21,000 20,000 Required: For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of each variar selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)) 21,000
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