Question

Jonah Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Jonah’s controller. The company applies overhead on the basis of machine hours.


Actual fixed manufacturing overhead incurred was $101,200; variable manufacturing overhead incurred was $214,000.

Required

a. Calculate the variable overhead spending and efficiency variances for May.
b. Calculate the fixed overhead spending variance forMay.


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  • CreatedFebruary 21, 2014
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