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The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing overhead. The firm
The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing overhead. The firm traces all direct costs to products, and it assigns overhead based on direct labor hours pairs of boots in March. on variable overhead during the month. capacity is 2,500 direct labor hours per month (to manufacture 5,000 pairs of boots). The company budgeted $15,000 variable overhead and 2,500 direct labor hours to manufacture 5,000 The factory used 2,700 direct labor hours in March to manufacture 4,800 pairs of boots and spent $15,600 For March the Platter Valley factory of Bybee Industries budgeted $90,000 of fixed overhead. Its practical The actual fixed overhead incurred for the month was $92,000 value: 0.50 points The Platter Valley factory of Bybee Industries uses a three-variance analysis of the total factory overhead variance Required: 1. Compute the total overhead spending variance, the efficiency variance, and the fixed overhead production volume variance. Spending Variance Efficiency Variance Production Volume Variance Unfavorable 1,800 Unfavorable 3,600 Unfavorable
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