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You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Harriet Carter
You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Harriet Carter Corporation. As an initial step, you prepare a summary of some events that bear on overhead for the most recent period. Variable overhead is applied based on hours of processing clerk labor. The standard variable-overhead price per order was $.06. The rate of 10 orders per hour is regarded as standard productivity per clerk. The total overhead incurred was $203,600, of which $135,900 was fixed. The fixed overhead spending variance was $400 unfavorable. The variable overhead flexible budget variance was $5600 unfavorable. The variable overhead spending variance was $3000 favorable. Find the following: 1) Variable overhead efficiency variance 2) Actual hours of input 3) Standard hours of input allowed for output achieved 4) Budgeted fixed overhead
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