Compute manufacturing overhead variances (Learning Objective 5)
Deelux manufactures paint. The company charges the following standard unit costs to production on the basis of static budget volume of 30,000 gallons of paint per month:

Deelux allocates overhead based on standard machine hours, and it uses the following monthly flexible budget for overhead:

Deelux actually produced 33,000 gallons of paint using 3,100 machine hours. Actual variable overhead was $16,200, and fixed overhead was $32,500. Compute the total overhead variance, the overhead flexible budget variance, and the produc¬ tion volume variance.

Transcribed Image Text:

Direct materials............. Direct labor......... Manufacturing overhead.. Standard unit cost $2.50 2.00 1.50 $6.00