ABC Manufacturing provides the standard cost of making a single product for June:

Factory Overhead Fixed 4 hours @ $1.25 per hour $5.00

Variable 4 hours @ $6.25 per hour $25.00

The factory overhead rate was based on a budgeted production of 16,000 units for June, and budgeted fixed factory overhead of $80,000. Actual transactions and the results for June were:

Direct Labor incurred:63,000hrs

Number of units produced:15,800

Factory Overhead incurred:

Fixed78,247

Variable390,320

Required: Complete the Worksheet and answer the following questions:

(a)What was the Overhead Spending Variance for June?

(b)What was the Overhead Volume Variance for June?

(c)What was the Overhead Flexible Budget Variance for June?

Overhead Variances

Act Overhead IncurredFlex Budget xFactory Overhead

Act Hrs workedApplied

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