Flint Masks makes customized goalie masks. Our variable overhead rate is $38 per Direct Labor Hour. Our
Question:
Flint Masks makes customized goalie masks.
Our variable overhead rate is $38 per Direct Labor Hour.
Our standard for production is 12 direct labor hours per custom hockey goalie mask produced.
Our fixed overhead budget is $89,000. Fixed overhead is applied per mask.
Budgeted production 800 masks.
Actual production 780 masks.
Actual costs:
Variable overhead $383,500.
Fixed overhead $87550.
Direct labor hours: 9285.
Calculate:
Variable overhead spending variance $ ____________________________
Variable overhead efficiency variance $ ____________________________
Fixed overhead application rate: $ ________________ per mask
Fixed overhead spending variance $ ___________________________
Fixed overhead production volume variance $ ________________________
Be sure to indicate whether each variance is F (favorable) or U (unfavorable).
McGraw Hills Conquering SAT Math
ISBN: 9780071493413
2nd Edition
Authors: Robert Postman, Ryan Postman