Fixed overhead variances In addition to the information for Acme Company in Mini-Exe...

Fixed overhead variances In addition to the information for Acme Company in Mini-Exercises 15.1 and 15.2, the standard fixed overhead application rate per unit consists of $2 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.

Refer to Mini-Exercises 15.1

Flexible budget Acme Company’s production budget for August is 17,500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $32,000. Actual production in August was 18,000 units.

Required:

Prepare a flexible budget that would be used to compare against actual production costs for August.

Refer to Mini-Exercises 15.2

Flexible budget and performance reporting In addition to the information for Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead, $6.82. Actual fixed overhead was $33,500.

Required:

Prepare a performance report, including each cost component, using the following headings: