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The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:  Standard:   Machine hours (MH) per unit 2 Fixed overhead rate per MH $5.00 Budgeted fixed overhead $25,000 Actual:   Machine hours 4,800 Fixed overhead $26,200 Units produced 2,600  Calculate the fixed overhead budget variance and volume variance for the month of June.

The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:  Standard:   Machine hours (MH) per unit 2 Fixed overhead rate per MH $5.00 Budgeted fixed overhead $25,000 Actual:   Machine hours 4,800 Fixed overhead $26,200 Units produced 2,600  Calculate the fixed overhead budget variance and volume variance for the month of June.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:
 

Standard:

 

Machine hours (MH) per unit

2

Fixed overhead rate per MH

$5.00

Budgeted fixed overhead

$25,000

Actual:

 

Machine hours

4,800

Fixed overhead

$26,200

Units produced

2,600


 Calculate the fixed overhead budget variance and volume variance for the month of June.  

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