Ask Question
26 May, 06:54

Asper Corporation has provided the following data for February. Denominator level of activity 7,700 machine-hours Budgeted fixed manufacturing overhead costs $ 266,420 Fixed component of the predetermined overhead rate $ 34.60 per machine-hour Actual level of activity 7,900 machine-hours Standard machine-hours allowed for the actual output 8,200 machine-hours Actual fixed manufacturing overhead costs $ 259,960 The budget variance for February is:

+5
Answers (1)
  1. 26 May, 08:17
    0
    Asper Corporation has provided the following data for February. Denominator level of activity 7,700 machine-hours Budgeted fixed manufacturing overhead costs $ 266,420 Fixed component of the predetermined overhead rate $ 34.60 per machine-hour Actual level of activity 7,900 machine-hours Standard machine-hours allowed for the actual output 8,200 machine-hours Actual fixed manufacturing overhead costs $ 259,960 The budget variance for February is $6,460 Favorable.

    Explanation:

    Budgeted fixed manufacturing overhead cost = $266,420.

    Actual fixed manufacturing overhead costs = $259,960

    The budget variance for February is calculated as below:

    Budget Variance = Actual Fixed Manufacturing Overheads - Budgeted Fixed Manufacturing Overheads

    Budget Variance = $259,960 - $ 266,420.

    Budget Variance = - $6,460

    Budget Variance = $6,460 Favorable
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Asper Corporation has provided the following data for February. Denominator level of activity 7,700 machine-hours Budgeted fixed ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers