ACC650 Module 5 - Budgeting and Variances

 ACC650 Module 5 - Budgeting and Variances

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Problem 9-43

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit,

and vegetables. The canned food box (type C) and the perishable food box (type P) have the following

material and labor requirements.

Exercise 11-26

Exercise 11–26

Straightforward Computation

of Overhead Variances

The following data are the actual results for Marvelous Marshmallow Company for October.

Actual output .................................................................................................................................

9000  cases

Actual variable overhead ................................................................................................................

$405,000

Actual fixed overhead .....................................................................................................................

$122,000

Actual machine time ......................................................................................................................

40500 machine hours