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during april, 90000 units were scheduled for production: however only 80000 units wer
actual direct labor cost incurred was $ 1567500 for 165000 actual hours of work
actual overhead totaled $ 1371500 of which $ 511500 was variable and $ 860000 was fi
required:
1. variable overhead spending variance
2. variable overhead efficiency variance
3. fixed overhead budget variance
4. fixed overhead volume variance
answer:
$ 16500 unfavorable
variable overhead spending variance
(1) (2)
$ 860000 $ 900000
$ 40000 favorable
fixed overhead budget variance
e company has developed standard overhead rates based on a monthly
$ 6
$ 10
16
wever only 80000 units were actually produced. The following data relate to april.
ctual hours of work
ariable and $ 860000 was fixed
= $ 511500 = $ 3,10
165000
= $ 900000
(3)
$ 100000 favorable
fixed overhead volume variance
monthly
ta relate to april.
d efficiency variances
15000 unfavorable
verhead efficiency variance no difference
variable overhead applied to work in process
standard allowed hours (SH) standard rate (SVR)
160000 hours $ 3 per hour
$ 480000
no difference