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(Solved) (Latest ver. Aug 2020) - Overhead analysi

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Overhead analysis. Armstrong Corporation uses standard costing. The following information is for 2004:

Static-budget machine-hours33,000
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.

 







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