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Question 3 Delicious Dinners is a meal delivery service. It has 20 restuarants from which it picks up meals and delivers them to customers who
Question 3 Delicious Dinners is a meal delivery service. It has 20 restuarants from which it picks up meals and delivers them to customers who phone or fax in orders. Delicious Dinners allocated variable and fixed overhead cost of the basis of delivery time. The owner, Fatima Al Shehhi, has the following information for July 2020 overhead costs: Delicious Dinners July 2017 Number of Deliveries Hours per delivery Hours of delivery time Variable overhead cost per hour of delivery time Variable overhead costs Fixed overhead costs Actual Static Results Budget 9,500 13,200 0,65 5,700 $ 1,80 $ 13,200 $ 41,000 $ 35,000 Requirements: Requirements: 1.) For 2020, compute the variances listed below and indicate whether each variance if favourable (F) or unfavorable (U). Calculations may be made on back of page (e) Variable manufacturing overhead spending variance (f) Variable manufacturing overhead efficiency variance (g) Production volume variance (h) Fixed manufacturing overhead spending variance 2.) Provide 1 plausible reasons for each of the variances
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