James Corp, applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Operating Levels Overhead Budget BOX Production in units 10,000 Standard direct labor hours 26,800 Budgeted overhead Variable overhead costs Indirect materials $18,200 Indirect Labor 26,000 Power 5,200 Maintenance 2,680 Total variable costs 52,890 Fixed overhead costs Rent of factory building 19,000 Depreciation Machinery 11,600 Supervisory salaries 16,280 Total fixed costs 46,800 Total overhead costs $98,880 During May, the company operated at 90% capacity (11.250 units) and incurred the following actual overhead costs Overhead costs (actual) Indirect materials $ 18,200 Indirect labor 28,950 Power 5,850 Maintenance 3,745 Rent of factory building 19,200 Depreciation Machinery 11,600 Supervisory salaries 19,300 Total actual overhead costs 5106,645 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 11,250 units 26,000 5,200 2,600 52,800 Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs Total overhead costs 19,800 11,689 16,200 46, see $98,888 During May, the company operated at 90% capacity (11.250 units) and incurred the following Overhead costs (actual) Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation Machinery Supervisory salaries Total actual overhead costs $ 18,200 28,950 5,850 3,745 19,000 11,600 19,380 $106,645 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 11.250 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and dassify it as favorable or unfavorable. (Indicate by selecting for favorable, unfavorable, and no variance.) Controllable variance Total actual overhead Flexible budget overhead Total Overhead controllable variance 0 Required 2 > 26,989 5,200 2,600 52,800 Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation Machinery Supervisory salaries Total fixed costs Total overhead costs 19,000 11,600 16,289 46,800 598,800 During May, the company operated at 90% capacity (11.250 units) and incurred the following Overhead casts (actual) Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation-Machinery Supervisory salaries Total actual overhead costs $ 18,280 28,950 5,850 3,745 19,690 11,600 19,300 $106,645 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 11.250 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and dassify it as favorable or unfavorable. (Indicate the eff selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 11,250 units. Classify as favorable or unfavorable. In the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculatio JAMES CORP Overhead Variance Report For Month Ended May 31 Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs Flexible Budget Actual Results Variances Fav./Unfav. Fixed overhead costs Total overhead costs
