Canvas Company manufactures paint The company charges the following standard
Canvas Company manufactures paint. The company charges the following standard unit costs to production on the basis of static budget volume of 35,000 cans of paint per month:
Direct materials........................................................................................... $2.60
Direct labour............................................................................................... 2.30
Manufacturing overhead............................................................................. 1.60
Standard unit cost....................................................................................... $6.50
Canvas allocates overhead based on standard machine hours and uses the following monthly flexible budget for overhead:
Canvas actually produced 40,000 cans of paint, using 3,180 machine hours. Actual variable overhead was $16,400, and fixed overhead was $33,000. Compute the total overhead variance, the overhead flexible budget variance, and the production volume variance.
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