Question
The (partial) cost sheet for the single product manufactured at Briarcliff Corporation follows: Direct labor (2 hours @ $30) $ 60 Variable overhead (2 hours
The (partial) cost sheet for the single product manufactured at Briarcliff Corporation follows:
Direct labor | (2 hours @ $30) | $ 60 |
---|---|---|
Variable overhead | (2 hours @ $9) | 18 |
Fixed overhead | (2 hours @ $11) | 22 |
The master budget level of production is 45,000 direct labor-hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period include the following:
Actual variable overhead incurred | $ 411,000 |
---|---|
Actual fixed overhead incurred | 463,000 |
Direct labor efficiency variance | 63,000 F |
Variable overhead price variance | 6,000 U |
Required: a. What was the variable overhead efficiency variance? b. What was the fixed overhead price variance? c. What was the fixed overhead production volume variance?
Note: For all requirements, indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
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