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Hi, I need help with the attached question and I will leave a thumbs up for an explanation, thank you! The predetermined manufacturing overhead rate
Hi, I need help with the attached question and I will leave a thumbs up for an explanation, thank you!
The predetermined manufacturing overhead rate is $12 per direct labor hour($12.00 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,100 direct labor hours (5,100 units) for the month. The master budget showed total variable costs of $33,150 ($6.50 per hour) and total fixed overhead costs of $28,050 ($5.50 per hour). Actual costs for October in producing 4,600 units were as follows. Direct materials (9,340 pounds) Direct labor (4,500 hours) Variable overhead Fixed overhead $63,325 55,530 40,793 16,307 $175,955 Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. Overhead controllable variance Favorable Overhead volume variance UnfavorableStep by Step Solution
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