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Flexible Budgets and Overhead Analysis E11-8 3


Flexible Budgets and Overhead Analysis E11-8 3. Compute the variable overhead spending and efficiency variances and the fixed over- head budget and volume variances for 19x3. Selected information relating to Yost Company's operations for 19x6 is given below: Activity: Denominator activity (machine-hours). 45,000 Standard hours allowed per unit 3 Number of units produced. 14,000 Costs: Actual fixed overhead costs incurred $267,000 Fixed overhead budget variance 3,000 F The company applies overhead cost to products on a basis of machine-hours. 1. What were the standard hours allowed for 19x6 production? 2. What was the fixed portion of the predetermined overhead rate for 19x6? 3. What was the volume variance for 19x6? Required

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