Question
Sharp Company manufacturers jeans. In June, Sharp made 1200 pairs of jeans, but had budgeted production at 1400 pairs of jeans. The allocation base for
Sharp Company manufacturers jeans. In June, Sharp made 1200 pairs of jeans, but had budgeted production at 1400 pairs of jeans. The allocation base for overhead costs is direct labor hours. The following additional data is available for the month:
Variable overhead cost standard $0.60 per DLHr
Direct labor efficiency standard 2.00 DLHr per jean
Actual amount of direct labor hours 2520 DLHr
Actual cost of variable overhead $1512
Fixed overhead cost standard $0.25 per DLHr
Budgeted fixed overhead $700
Actual cost of fixed overhead $750
Calculate:
Variable overhead cost variance
Variable overhead efficiency variance
Total variable overhead variance
Fixed overhead cost variance
Fixed overhead volume variance
Total fixed overhead variance
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