The Platter Valley factory of Bybee Industries uses a three-variance analysis of the total factory overhead variance.

Question:

The Platter Valley factory of Bybee Industries uses a three-variance analysis of the total factory overhead variance.

 

Budgeted variable factory overhead


 $ 15,000
Budgeted direct labor hours



 2,500
Budgeted production in pairs of boots


 5,000
Actual variable factory overhead


 $ 15,600
Actual direct labor hours



 2,700
Actual production in pairs of boots


 4,800
Budgeted fixed factory overhead


 $ 90,000
Actual fixed factory overhead



 $ 92,000


Required

1. Use the data given in Exercises 15-31 and 15-32 to compute the total overhead spending variance, the efficiency variance, and the production-volume variance.

2. Use your answers for Requirement 1 of Exercises 15-31 and 15-32 to determine the spending variances (both variable and fixed), the efficiency variance, and the production-volume variance.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

Question Posted: