Question - Ronaldo Corporation has provided the following data for June.
Denominator level of activity 2,000 machine-hours
Budgeted fixed overhead costs $39,200
Fixed portion of the predetermined overhead rate $19.60 per machine-hour
Actual level of activity 2,300 machine-hours
Standard machine-hours allowed for the actual output 2,200 machine-hours
Actual fixed overhead costs $40,550
Required:
(a) Compute the budget variance for June. Show your work!
(b) Compute the volume variance for June. Show your work!