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Help with question 3. The applied Variable overhead please! Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills
Help with question 3. The applied Variable overhead please!
Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill reqires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units) Actual direct labor hours (AH) 446,000 Actual fixed overhead $835,600 Required: 594,000 Actual variable overhead $928,000 1. Compute the applied fixed overhead. 824,175 2. Compute the fixed overhead spending and volume variances. Enter amounts as positive numbers and select Favorable or Unfavorable Spending variancee Volume variance 3,100 Unfavorable 8,325 Unfavorable 3. Compute the applied variable overhead. 941,900 X 4. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Spending variance Efficiency variance 8,600 Favorable 1,050 UnfavorableStep by Step Solution
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