The milling department uses standard machine hours to

Reference no: EM13595694

The Milling Department uses standard machine hours to allocate overhead to products. Budgeted volume for the year was 36,000 machine hours. A flexible budget is used to set the overhead rate. Fixed overhead is budgeted to be $720,000 and variable overhead is estimated to be $10 per machine hour.During the year, two products are milled. The following table summarizes operations.Calculate all the relevant overhead variances for the department, and write a memo that describes what each one means.

Reference no: EM13595694

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