Overhead analysis. Armstrong Corporation uses standard costing. The following information is for 2004:
Fixed overhead budget cost$4,950,000
Fixed overhead actual cost$4,500,000
Variable overhead actual cost$96,000,000
Variable overhead rate per machine-hour$300
Actual machine-hours used30,000
Budgeted machine-hours allowed for actual output35,000
1) Calculate variable overhead spending variance and efficiency variance.
2) Compute fixed overhead spending variance and production-volume variance.
See the attached file.
This question was answered on: Sep 16, 2020