Question
Pointe Claire Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the
Pointe Claire Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,900 units. Manufacturing overhead is budgeted at $124,600 for the period (20% of this cost is fixed). The 16,830 hours worked during the period resulted in the production of 8,240 units. The variable manufacturing overhead cost incurred was $101,200 and the fixed manufacturing overhead cost was $28,900.
Calculate the variable overhead spending variance for the period.
Calculate the variable overhead efficiency (quantity) variance for the period.
Calculate the fixed overhead budget (spending) variance for the period.
Calculate the fixed overhead volume variance for the period.
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