Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P1132 Straightforward overhead variances: manufacturer Dtago Stationery Company manufactures cardboard folders. The company has developed standard overhead rates based on a monthly capacity of 180
P1132 Straightforward overhead variances: manufacturer Dtago Stationery Company manufactures cardboard folders. The company has developed standard overhead rates based on a monthly capacity of 180 000 direct labour hours (DLH) as iollows: Standard costs per unit (one box of folders): 1Variable overhead (2 hours @ $6 per DLH) 12 Fixed overhead (2 hours @ $10 per DLH) 20 Total $32 During April, 90 000 units were budgeted for production; however, only 80 009 units were )roduced. The following data relate to April: Actual direct labour cost incurred was $3 135 000 for 165 000 actual hours of work. Actual overhead incurred totalled $2 7'43 000, of which $1 023 000 was variable and $1 720 )00 was fixed. Required: Zalculate the following variances. State whether each variance is favourable or unfavourable. 1. variable overhead spending variance 2. variable overhead efficiency variance 3. fixed overhead budget variance 4. fixed overhead volume variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started