Question
help with part (b) please The following information was taken from the annual manufacturing overhead cost budget of Ivanhoe Company: Variable manufacturing overhead costs $32,680
help with part (b) please
The following information was taken from the annual manufacturing overhead cost budget of Ivanhoe Company: Variable manufacturing overhead costs $32,680 Fixed manufacturing overhead costs $15,960 Normal production level in labour hours 15,200 Normal production level in units 3,800 Standard labour hours per unit 4 During the year, 3,600 units were produced, 14,500 hours were worked, and the actual manufacturing overhead was $47,980. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours.
(a)
variable manufacturing overhead = $2.15
fixed manufacturing overhead = $1.05
total manufacturing overhead = $3.20
(b)
calculate the total, budget, and volume overhead variances (indicate if favourable, unfavourable, neither)
Total overhead variance $
Budget overhead variance $
Volume overhead variance $
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