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PLEASE HELP, I WILL UPVOTE! Last month, Watermate reported the following actual results for the production of 69,000 bottles: Direct materials . 1.6kg per bottle,
PLEASE HELP, I WILL UPVOTE!
Last month, Watermate reported the following actual results for the production of 69,000 bottles: Direct materials . 1.6kg per bottle, at a cost of $0.80 per kg Direct labour 1/4 hour per bottle, at a cost of $13.00 per hour Actual variable overhead $91,000 Actual fixed overhead 28,100 The company has these standards: Direct materials (clay) .1.3kg per bottle, at a cost of $0.44 per kg Direct labour 1/5 hour per bottle, at a cost of $14.60 per hour Static budget variable overhead $70,400 Static budget fixed overhead . $29,700 Static budget direct labour hours 11,000 hours Static budget number of bottles 50,000 Watermate allocates manufacturing overhead to production based on standard direct labour hours. Watermate is a manufacturer of ceramic bottles. (Click the icon to view the standards.) (Click the icon to view the actual results.) Requirements 1. Compute the total manufacturing overhead variance. What does this tell management? 2. Compute the overhead flexible budget variance. What does this tell management? 3. Compute the production volume variance. What does this tell management? Requirement 1. Compute the total manufacturing overhead variance. What does this tell management? Identify the formula labels and compute the total manufacturing overhead variance. (Enter the result as a positive number. Label the variance as faver unfavourable (U).) Total overhead varianceStep by Step Solution
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