The Platter Valley factory of Bybee Industries uses a three-variance analysis of the total factory overhead variance.
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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.
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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