Question

The managerial accountant at Aquatics Pools and Spas assess a fixed overhead budget variance of U in the month of April. The standard hours in April were hours and the standard rate was projected at per machinehour. There were unforeseen complications that involved raw materials and the standard rate projected per machinehour was inaccurate. What was the standard rate per machinehour if the standard fixed overhead cost of production is ​? What is the budgeted fixed overhead amount if the actual fixed overhead is ​?

Answer 1

Answer: a. $14.17 /machine hour; $39,700

Step-by-step explanation:

a. What was the standard rate per-machine hour if the standard fixed overhead cost of production is $41,100?

Standard Fixed Overhead Cost of Production = Standard Hours * Standard Rate

41,100 = 2,900 hours in April * Standard Rate

Standard Rate = 41,100/2,900

Standard Rate = 14.17 per machine hour

b. What is the budgeted fixed overhead amount if the actual fixed overhead is ​$43,100?

Budgeted Fixed Overhead= Actual Fixed overhead - Fixed overhead unfavourable variance

= 43,100 - $3,400 U in the month of April

= $39,700