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ACG 3341 Week 10 Individual Work
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E8-26 (Overhead variances, missing information; page 293)
(Horngren, Datar, & Rajan, 2012) Dvent budgets 18,000 machine-
hours for the production of computer chips in August 2011. The
budget variable overhead rate is $6 per machine-hour. At the end of
August, there is a $375 favorable spending variance for variable
overhead and a $1,575 unfavorable spending variance for fixed
overhead. For the computer chips produced, 14,850 machine-hours
are budgeted and 15,000 machine-hours are actually used. Total
actual overhead costs are $120,000.
Required