Question: Berlin Ltd uses a combined overhead rate of 2 90

Berlin Ltd. uses a combined overhead rate of $ 2.90 per machine hour to apply overhead to products. The rate was developed at an annual expected capacity of 264,000 machine hours; each unit of product requires two machine hours to produce. At 264,000 machine hours, expected fixed overhead for Munich Ltd. is $ 250,800.
During November, the company produced 11,960 units and used 24,700 machine hours. Actual variable overhead for the month was $ 47,100 and fixed overhead was $ 20,000. Calculate the overhead spending, efficiency, and volume variances for November.

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  • CreatedJune 03, 2014
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