Compute standard overhead cost per unit; compute total standard overhead cost for year's production; compute total overhead variance;

use the three-variance method to analyze total overhead variance. (Objs. 1, 2, 4). Toledo Corporation has established standard overhead costs for the year 19X9 based on the following budget data:

Budgeted Production Budgeted Direct Labor Hours Budgeted Fixed Costs Budgeted Variable Costs Information for January 19X9 is as follows:

Production Direct Labor Hours Total Overhead Costs (Fixed as Budgeted)

2,000 units 20,000 hours

$240,000

$400,000 150 units 1,680 hours 52,800

a. Compute the standard overhead cost per unit of product.

b. Compute the total standard overhead cost for production during January.

c. Compute the total overhead variance for January.

d. Use the three -variance method to analyze the total overhead variance for January.

LO.1