Pairs of shoes to be produced and sold

$55,000$

Standard cost per unit:

Direct materials

$$,15$

Direct labour

$12$

Variable overhead

$6$

Fixed overhead

Total unit cost

$\backslash$table$[[,3],[$$$,36,]]$

During the year, a total of $50,000$ units were produced and sold. The following actual costs were incurred:

Direct materials

Direct labour

Variable overhead

Fixed overhead

$$775,000$

$590,000$

$310,000$

$180,000$

There were no beginning or ending inventories of raw materials. In producing the $50,000$ units, $63,000$ hours were worked, $5$ percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labour hours.

Required:

Using a flexible budget, prepare a performance report comparing expected costs for the actual production with actual costs. In the variance type column, type $"F"$ for favourable and $"$U$"$ for unfavourable. If the variance is zero, enter $("$O$")$ in the variance amount column and $"$N$"$ for neither in the variance type column. $($Note: Be sure to use capital letters.$)$

Shumaker Company

Performance Report

$2$a$.$ Determine the fixed overhead spending and volume variances.

Spending variance

Volume variance