Overhead Variances

The following information is for the third q

uarter of this year:

Production

Planned 92,000 units

Actual 87,000 units

Direct labor hours

Planned 506,800 DL hrs

Actual 380,000 DL hrs

Fixed manufacturing overhead

Planned $205,000

Actual $182,400

Variable manufacturing overhead

Planned $910,000

Actual $841,500

Standard direct labor hour per unit: 5.5

Each unit of ASD-34 produced requires:

2 units of UIO-89

3 direct labor hours at $23.00 per hour

Manufacturing overhead at 150% of direct labor cost