Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bonita Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period

Bonita Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,900 units. Manufacturing overhead is budgeted at $124,600 for the period (20% of this cost is fixed). The 16,830 hours worked during the period resulted in the production of 8,240 units. The variable manufacturing overhead cost incurred was $101,200 and the fixed manufacturing overhead cost was $28,900.

a.Calculate the variable overhead spending variance for the period.

b.Calculate the variable overhead efficiency (quantity) variance for the period.

c.Calculate the fixed overhead budget (spending) variance for the period.

d. Calculate the fixed overhead volume variance for the period.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing An Integrated Approach

Authors: Richard Cascarino

1st Edition

0702166693, 978-0702166693

More Books

Students also viewed these Accounting questions

Question

What discovery of J. J. Thomson won him the Nobel Prize?

Answered: 1 week ago

Question

1. Send a brief note thanking the family members for attending.

Answered: 1 week ago

Question

What lessons in intervention design, does this case represent?

Answered: 1 week ago