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Bar-Gun manufactures paint. The company charges the following standard unit costs to production on the basis of static budget volume of 30,000 cans of paint
Bar-Gun manufactures paint. The company charges the following standard unit costs to production on the basis of static budget volume of 30,000 cans of paint per month: (Click the icon to view the standard unit costs to production.) Bar-Gun allocates overhead based on standard machine hours and uses the following monthly flexible budget for overhead: (Click the icon to view the monthly flexible budget for overhead.) Bar-Gun actually produced 34,000 cans of paint using 3,100 machine hours. Actual variable overhead was $16,200, and fixed overhead was $33,000. Compute the total overhead variance, the overhead flexible budget variance, and the production volume variance. Identify the formula labels, and compute the total overhead variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).) Total overhead variance: Actual overhead cost Standard overhead allocated to production Total overhead variance Identify the formula labels, and compute the overhead flexible budget variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U) Overhead flexible budget variance: Actual overhead cost Flexible budget overhead for actual outputs Overhead flexible budget variance Identify the formula labels, and compute the production volume variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).) Production volume variance: Flexible budget overhead for actual outputs Standard overhead allocated to production Production volume variance
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