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Explain shine bakery produces specialty coffee machines

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Reference no: EM13835650

1. Shine Bakery produces specialty coffee machines. Shine uses a standard cost system.

Data regarding production during August are as follows:

 

Variable Manufacturing overhead costs incurred

$155,100

Variable Manufacturing overhead cost rate

$12 per standard machine hour

Fixed manufacturing overhead costs incurred

$401,000

Fixed manufacturing overhead budgeted

$390,000

Denominator level in machine-hours (Budget)

 13,000

 Standard machine-hour allowed per unit of output

    .3

Units of output

41,000

Actual machine-hours used

13,300

Ending Work-in-process inventory

  0

Using the 4-variance method calculate all (variable and fixed) manufacturing overhead variances. Indicate F for favorable, and U for unfavorable.

Reference no: EM13835650

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