Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sharp Company manufactures jeans. In June, Sharp made 1200 pairs of jeans, but had budgeted production at 1400 pairs of jeans. The allocation base for
Sharp Company manufactures 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: AED 0.60 per DLHr variable overhead cost standard 2.00 RLHr per jean Direct labor efficiency standard 2,520 DLHr AED 1,512 Actual amount of direct labor hours Actual cost of variable overhead AED 0.25 per DLHr Fixed overhead cost standard Budgeted fixed overhead Actual cost of fixed overhead AED 700 AED 750 Calculate the following variances: (30 Points, S pts ea.) 8a. Variable overhead cost Variance AED (F) or (U) 8b. Variable overhead efficiency variance AED (F) or (U) (F) or (U) 8c. Total variable overhead variance AED 8d. Fixed overhead cost variance (F) or (U) AED (F) or (U) 8e. Fixed overhead volume variance AED 8f. Total fixed overhead variance AED (F) or (U)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started