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1/ The monthly flexible budget for F.O.H is as follows: Activity level Direct labor hours 1000 2000 3000 Total variable F.O.H 10000 20000 30000 Total

1/ The monthly flexible budget for F.O.H is as follows: Activity level Direct labor hours 1000 2000 3000 Total variable F.O.H 10000 20000 30000 Total fixed F.O.H 10000 10000 10000 The following information available for January 2020: a. Production output 950 unites. b. Direct labor hours 2050 hours. c. Variable F.O.H $21000 d. Fixed F.O.H $10500 e. Standard hours to produce a unite (2) hours. f. Normal capacity level 2000 hours. Required: prepare analysis for variance of F.O.H using the two and three variance method if you know that a standard cost sheet for one unite: Variable F.O.H 2h 10 $ Fixed F.O.H 2 h 5 $

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