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Author Question: Bolt Industries gathered the following information for the month ended March 31:The static budget ... (Read 54 times)

ec501234

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Bolt Industries gathered the following information for the month ended March 31:

The static budget volume is 4,500 units:

Overhead flexible budget:

Number of units 8,000 9,000 10,000
Standard machine hours 12,000 13,500 15,000
Budgeted overhead costs:
Variable $48,000 $54,000 $60,000
Fixed $33,750 $33,750 $33,750

Actual production was 10,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours.


What is the production volume variance at Bolt Industries? (Assume the allocation base for fixed overhead costs is machine hours.)
◦ $41,250 favourable
◦ $41,250 unfavourable
◦ $33,000 favourable
◦ $33,000 unfavourable


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Marked as best answer by ec501234 on Jan 5, 2020

flexer1n1

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ec501234

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Reply 2 on: Jan 5, 2020
YES! Correct, THANKS for helping me on my review


31809pancho

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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