Question: Deelux manufactures paint The company charges the following standard unit

Deelux manufactures paint. The company charges the following standard unit costs to production on the basis of static budget volume of 30,000 cans of paint per month:
Direct materials........................................................................................... $2.50
Direct labour............................................................................................... 2.00
Manufacturing overhead............................................................................. 1.50
Standard unit cost.......................................................................................$6.00
Deelux allocates overhead based on standard machine hours and uses the following monthly flexible budget for overhead:
Deelux actually produced 33,000 cans of paint using 3,100 machine hours. Actual variable overhead was $16,200, and fixed overhead was $32,500. Compute the total overhead variance, the overhead flexible budget variance, and the production volume variance.


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  • CreatedApril 30, 2015
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