Question
Hope Corporations standard cost system contains the following overhead costs, computer based on a monthly normal volume of 25,000 units or 50,000 direct labor hours:
Hope Corporations standard cost system contains the following overhead costs, computer based on a monthly normal volume of 25,000 units or 50,000 direct labor hours:
Variable Factory OverheadP12 per unit
Fixed Factory Overhead8 per unit
Total20
The following information pertains to the month of april 2019:
Actuak FOH costs incurred:
VariableP316 680
FixedP225 000
Actual Production26 000 units
Actual direct labor hors worked54 600 hours
Required:
a. The total FOH ciost variance is:
AFOH
less: Standard FOH
FOH Variance
b. Compute the controllable variance and volume variance using the two-way analysis.
AFOH
Less: BASH
Controllable Variance
BASH
Less: Standard FOH
Volume Variance
C. Compute the budget or spending variance, efficiency variance and volume variance using the three-way analysis.
AFOH
Less: BAAH
Spending Variance
BAAH
Less: BASH
Efficiency Variance
BASH
Less: Standard FOH
Volume Variance
d. The variable overhead variance amounts to:
e. The variable overhead spending variance is:
f. The variable overhead efficiency variance is:
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