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ABC manufactures tides for the shore. Fixed and variable manufacturing overheads are allocated to each tide using budgeted assembly-hours and the budgeted assembly-hours and the budgeted assembly time is 2 hours per unit. Budgeted tides assembled and sold are 110. Budgeted manufacturing overhead cost per hour of assembly time is $32. Budgeted fixed manufacturing overhead cost is $10780. In actual, ABC manufactured and sold 225 tides by using 360 hours of assembly time. Total variable manufacturing costs and fixed manufacturing costs are $11,933 and $12,180 respectively.
Required:
Question 1: What is the analysis of all variable manufacturing overhead and fixed manufacturing overhead variances?
Question 2: What is the difference between planning and control of fixed and variable manufacturing overhead?
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