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Exercise 11-26 Straightforward Computation of Overhead Varlances (LO 11-5) The following data are the actual results for Marvelous Marshmallow Company for October. Actual output
Exercise 11-26 Straightforward Computation of Overhead Varlances (LO 11-5) The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead Actual fixed overhead Actual machine time 12,000 cases $410,000 $123,000 41,000 machine hours Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate Standard quantity of machine hours $ 9.00 per machine hour Budgeted fixed overhead Budgeted output 3 hours per case of marshmallows $117,000 per month 13,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (l.e., zero variance).) a. Variable-overhead spending variance b. Variable-overhead efficiency variance c. Fixed-overhead budget variance d. Fixed-overhead volume variance Favorable
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