10 Nov Variable price and usage variances and fixed manuf
Variable price and usage variances and fixed manufacturing overhead cost variances Kemp Tables, Inc. (KTI), makes picnic tables of 2 3 4 planks of treated pine. It sells the tables to large retail discount stores such as Walmart. After reviewing the following data generated by KTI chief accountant, the company president, Arianne Darwin, expressed concern that the total manufacturing cost was more than $0.5 million above budget ($7,084,800 ˆ’ $6,520,000 = $564,800).
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