1. Unfortunately, due to accounting glitches in FTW’s software, several numbers and labels have been
omitted from the analysis of fixed overhead below. Supply the missing numbers and labels to help FTW out:
Actual Fixed Overhead Cost Flexible Budget Overhead Cost Fixed Overhead Cost Applied
A b to work in progress
Budget variance, $1880u 302,100 MH x $1.08 = (c)
Total variance, $388 F (d)
2. Next, assume that 6 minutes of machine time is standard per unit of production. How many units were actually produced in the situation above?
3. Once again, assume that 6 minutes of machine time is standard per unit of production. How many units of production were assumed when the predetermined application rate for fixed overhead was established?