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Mini-Exercise 15-6(Algo) Fixed overhead variances LO 15-4,15-5,15-6 Acme Company's production budget for August...

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Accounting

Mini-Exercise 15-6(Algo) Fixed overhead variances LO 15-4,15-5,15-6
Acme Company's production budget for August is 18,600 units and includes the following component unit costs: direct materials, $8.0;
direct labor, $11.5; variable overhead, $5.00. Budgeted fixed overhead is $43,000. Actual production in August was 19,998 units. Actual
unit component costs incurred during August include direct materials, $10.00; direct labor, $10.50; variable overhead, $6.00. Actual
fixed overhead was $45,600. The standard fixed overhead application rate per unit consists of $2.5 per machine hour and each unit is
allowed a standard of 1 hour of machine time.
Required:
Calculate the fixed overhead budget variance and the fixed overhead volume variance.
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance).
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