1.Unfortunately, due to accounting glitches in FTW’s software, several numbers and labels have been

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1.      Unfortunately, due to accounting glitches in FTW’s software, several numbers and labels have been

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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

                                                                                                                                                                            c

                                                                     Budget variance, $1880u                                             302,100 MH x $1.08 = (c)

                                                                  Total variance, $388 F                                                                   (d)

                                                                                                                                                                         (e)

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?

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