MiniExercise Algo Fixed overhead variances LO
Acme Company's production budget for August is units and includes the following component unit costs: direct materials, $;
direct labor, $; variable overhead, $ Budgeted fixed overhead is $ Actual production in August was units. Actual
unit component costs incurred during August include direct materials, $; direct labor, $; variable overhead, $ Actual
fixed overhead was $ The standard fixed overhead application rate per unit consists of $ per machine hour and each unit is
allowed a standard of hour of machine time.
Required:
Calculate the fixed overhead budget variance and the fixed overhead volume variance.
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero
variance
