Kegler Company has set the following standard costs per unit for the product it manufactures The predetermined
Question:
Kegler Company has set the following standard costs per unit for the product it manufactures
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 10,000 units per month. The following flexible budget information is available.
During May, the company operated at 90% of capacity and produced 9,000 units, incurring the following actual costs.
Required 1. Compute the direct materials variance, including its price and quantity variances.
2. Compute the direct labor variance, including its rate and efficiency variances, 3. Compute these variances:
(a) variable overhead spending and efficiency,
(b) fixed overhead spending and volume, and
(c) total overhead controllable.
4. Prepare a detailed overhead variance report (as in Exhibit 23.15) that shows the variances for indi¬ vidual items of overhead.
Step by Step Answer:
Fundamental Accounting Principles Volume 2
ISBN: 9780077716660
21st Edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta