Question

Starlight Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate........................$18.00 per direct-labor hour
Standard quantity of direct labor.......................2 hours per unit of output
Budgeted fixed overhead..................................$300,000
Budgeted output................................................25,000 units
Actual results for February are as follows:
Actual output.......................................... 20,000 units
Actual variable overhead.......................................... $960,000
Actual fixed overhead.............................................. $291,000
Actual direct labor.................................................... 50,000 hours
Required:
Use the variance formulas to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.
1. Variable-overhead spending variance.
2. Variable-overhead efficiency variance.
3. Fixed-overhead budget variance.
4. Fixed-overhead volume variance.



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  • CreatedApril 22, 2014
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