Reference no: EM131437237
Question: Using the figures shown in Activity below, what was the fixed overhead spending variance for June?
Show that
Budget Actual
Output 11,00 units 1,150 units
(Production and sales)
£ £
Sales revenue 110,000 113,500
Raw materials (44,000) (44,000 meters) (46,300) (46,300 meters)
Labour (22,000) (2,750 hours) (23,200) (2,960 hours)
Fixed overheads (20,000) (19,300)
Operating profit 24,000 24,700
Try flexing the june budget, comparing it with the original june budget, and so find the sales volume variance.
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