Last year, Tourna Company had planned to produce 140,000 units. However, 143,000 units were actually produced. The company uses direct labour hours to assign overhead to products. Each unit requires 0.9 standard hours of labour for completion. The fixed overhead rate was $11 per direct labour hour and the variable overhead rate was $6.36 per direct labour hour.
The following variances were computed:
Fixed overhead spending variance ........................ $24,000 U
Fixed overhead volume variance .......................... 29,700 F
Variable overhead spending variance ..................... 9,196 U
Variable overhead efficiency variance ..................... 1,272 U
Required:
1. Calculate the total applied fixed overhead.
2. Calculate the budgeted fixed overhead.
3. Calculate the actual fixed overhead.
4. Calculate the total applied variable overhead.
5. Calculate the number of actual direct labour hours.
6. Calculate the actual variable overhead.