Question
Use the following information of Alfred Industries. Standard manufacturing overhead based on normal monthlyvolume: Fixed ($303,900 20,000 units) $ 15.20 Variable ($100,000 20,000
Use the following information of Alfred Industries.
| Standard manufacturing overhead based on normal monthlyvolume: | ||||||
| Fixed ($303,900 ÷ 20,000 units) | $ | 15.20 | ||||
| Variable ($100,000 ÷ 20,000 units) | 5.00 | $ | 20.20 | |||
| Units actually produced in current month | 18,000 | units | ||||
| Actual overhead costs incurred (including $300,000 fixed) | $ | 383,800 | ||||
Compute the overhead spending variance and the volume variance.(Indicate the effect of each variance by selecting"Favorable" or "Unfavorable". Select "None" and enter "0" for noeffect (i.e., zero variance).)
Overhead spending variance = (Favorable or Unfavorable)
Overhead volume variance = (Favorable or Unfavorable)
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Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
