Question

Atlanta Adhesives Inc. budgets 15,000 direct labor hours for the year. The total overhead budget is expected to amount to $42,000. The standard cost for a unit of the company’s product estimates the variable overhead as follows:
The actual data for the period follow:
Actual completed units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500
Actual direct labor hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,500
Actual variable overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,000
Actual fixed overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,700
Using the four-variance method, calculate the overhead variances.


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  • CreatedMarch 31, 2015
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