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Atkinson Landscaping applies variable overhead based on direct labour hours. At the beginning of the current year, Atkinson had estimated the following: Estimated variable overhead
Atkinson Landscaping applies variable overhead based on direct labour hours. At the beginning of the current year, Atkinson had estimated the following:
Estimated variable overhead $56 000
Estimated units of production 10 000 units
Standard direct labour hours per unit 2.5 hours
During the year, 11 000 units were produced using a total of 27 200 direct labour hours and actual overhead costs were $60 000.
Atkinsons variable overhead spending variance for the year was:
$145 U |
$4000 U |
$672 F |
$928 F |
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