Problem 11-41 Overhead Calculations; Variance Interpretation (LO 11-5) Maxwell Company uses a standard cost accounting...
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Problem 11-41 Overhead Calculations; Variance Interpretation (LO 11-5) Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable-overhead rate per hour: $8.60 Standard fixed-overhead rate per hour: $13.80 Planned activity during the period: 33,000 machine hours Actual production: 19,200 finished units Machine-hour standard: Two completed units per machine hour Actual variable overhead: $278,050 Actual total overhead: $747,050 Actual machine hours worked: 33,500 Required: 1. Calculate the budgeted fixed overhead for the year. 2. Compute the variable-overhead spending variance. 3. Calculate the company's fixed-overhead volume variance. 4-a. Did Maxwell spend more or less than anticipated for fixed overhead? How much? 4-b. What was the difference in actual and anticipated overhead? 5. Was variable overhead underapplied or overapplied during the year? By how much? Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required 4A Required 4B Required 5 Calculate the budgeted fixed overhead for the year. Budgeted fixed overhead
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