Compute standard overhead cost for period; compute total overhead variance for period; use three-variance analysis to analyze total overhead variance. (Objs. 2, 3, 4).

Data for Exercise 10.

Number of units produced at normal volume Number of direct labor hours at normal volume Fixed overhead budgeted Variable overhead budgeted (25,000 hours at $3 per hour)

Total budgeted costs at normal capacity Standard overhead per unit ($175,000 h-

5,000 units)

5,000 units 25,000 hours

$100,000 75,000 175,000 35 During June 19X9, 600 units were produced requiring 3,010 hours of labor. The total costs were $17,062, consisting of:

Fixed costs Variable costs Total

$ 8,333 8,729

$17,062

a. Compute the standard overhead costs of the 600 units produced.

b. Determine the total overhead variance for the month. Is it favorable or unfavorable?

c. Analyze the total overhead variance into three component parts.

Indicate whether each is favorable or unfavorable.