Discuss possible causes of the variable manufacturing overhead variances Transcribed Image Text: Straightforward coverage of manufacturing overhead, standard-costing system

Q.Discuss possible causes of the variable manufacturing overhead variances Transcribed Image Text: Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil division
of an American telecommunications company uses standard costing for its machine-paced production of
telephone equipment. Data regarding production during June are as follows:
$537,470
$7 per standard machine-hour
$146,101
$136,000
Variable manufacturing overhead costs incurred
Variable manufacturing overhead cost rate
Fixed manufacturing overhead costs incurred
Fixed manufacturing overhead costs budgeted
Denominator level in machine-hours
68,000
1.2
66,500
Standard machine-hour allowed per unit of output
Units of output
Actual machine-hours used
75,700
Ending work-in-process inventory

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