Question
Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs).
Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours.
Standard quantities, prices, and costs are below:
Actual results for the year are below:
A) Compute the variable manufacturing overhead spending variance.
B) Compute the variable manufacturing overhead efficency variance.
c) Compute the fixed manufacturing overhead budget variance.
D) Compute the fixed manufacturing overhead volume variance.
PLEASE SHOW YOUR WORK
Standard Cost Per UnitStandard Price or Rate Standards 0.25 kilogram 0.20 DLH 0.20 DLH 0.20 DLH Direct materia. $4 S16 per kilogram $10 per DLH $5 per DLH $10 per DLH Direct materials... Direct labor. Variable overhead. Fixed overhead
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