Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Three OH variances Berlin Ltd. uses a combined overhead rate of $2.90 per machine hour to apply overhead to products. The rate was developed
Three OH variances Berlin Ltd. uses a combined overhead rate of $2.90 per machine hour to apply overhead to products. The rate was developed at an annual expected capacity of 316,800 machine hours; each unit of product requires two machine hours to produce. At 316,800 machine hours, expected fixed overhead for Munich Ltd. Is $300,960. During November, the company produced 14,352 units and used 29,640 machine hours. Actual variable overhead for the month was $56,520 and fixed overhead was $24,000. Calculate the overhead spending, efficiency, and volume variances for November. Note: Do not use negative signs with your answers. Note: Round your answers to the nearest whole dollar. Actual OH $ 56,520 $ Budget at Actual OH Spending Variance Budget at Actual = OH Spending Variance 24,000 = $ OH Efficiency Variance 0 OH Efficiency Variance Budget at Standard $ 0 - $ 0 = $ Volume Variance 0 - $ Budget at Standard $ Please answer all parts of the question. Applied OH Volume Variance 0 = $ 0 0
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