James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget Operating Levels sex 8,000 32,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation Machinery Supervisory salaries Total fixed costs Total overhead costs $ 22,480 32,000 6,400 3,200 64, eee 16,000 11,300 30,3ee 57,600 $121,600 During May, the company operated at 90% capacity 19,000 units) and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials $ 22,400 Indirect labor 35,85 Power 7,2ee Maintenance 4,405 Rent of factory building 16, eee Depreciation Machinery 11,300 Supervisory salaries 33, 100 Total actual overhead costs $130,255 1. Compute the overhead controllable variance and classify it as favorable or unfavorable. 2. Compute the overhead volume variance and classify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1. Compute the overhead controllable variance and classify it as favorable or unfavorable 2. Compute the overhead volume variance and classify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable variance $ 130,255 $ 57,600 Total actual overhead Flexible budget overhead Fixed Variable Total Overhead controllable variance 57,600 Unfavorable Required 2 > 1. Compute the overhead controllable variance and classify it as favorable or unf 2. Compute the overhead volume variance and classify it as favorable or unfavon 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and classify it as favorable or unfavorable. selecting for favorable, unfavorable, and no variance. Do not round intermediate calo Volume Variance Total budgeted fixed OH 57,600 Total fixed overhead applied Volume variance Favorable Assignment 1. Compute the overhead controllable variance and classify it as favorable or unfavorable 2. Compute the overhead volume variance and classify it as favorable or unfavorable 3. Prepare an overhead variance report at the actual activity level of 9.000 units Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9.000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) JAMES CORP. Overhead Variance Report For Month Ended May 31 80% of capacity 90% of capacity Favorable Flexible Budget Actual Results Variances Fav./Unfav. Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Indirect materials Indirect labor Power Maintenance S + 7.2007 22.4001 35,850 7.2007 4.4057 Favorable Favorable No variance Unfavorable 7.200 69.855 Favorable Total variable costs Fored overhead costs Rent of factory building Depreciation Machinery Supervisory salaries 16,000 11,300 30,300 16.000 1,300 331001 No variance No variance 2,800 Unfavorable Total fred costs Total overhead costs 57,600 64,800 60.4001 130255 Unfavorable $ $ Unfavorable
