Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Austin Company applies overhead on the basis of direct labor hours. Here is the information provided to you by the Controller. Standards: FOH (3 DLH)
Austin Company applies overhead on the basis of direct labor hours. Here is the information provided to you by the Controller.
Standards:
FOH (3 DLH)
Planned production: 8,000 units.
Budgeted factory overhead: $72,000
Budgeted fixed factory overhead: $48,000
Actual Hours Worked: 25,000
Actual Units Made: 8,500 units.
Actual manufacturing overhead cost incurred: $80,000.
Required:
Calculate the following:
a. Total Spending Variance
b. Total Efficiency Variance
c. Total Volume Variance
d. Proof
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started