Forrest Company uses a standard cost system for its production process and applies overhead based on...
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Forrest Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for August when Forrest made 4,500 units: Standard: Budgeted variable overhead $21,875 Budgeted fixed overhead $38,750 Budgeted direct labor hours 12,500 hours Budgeted output 5,000 units Actual: Direct labor hours 10,000 Variable overhead $26,250 Fixed overhead $38,000 Requirement: Calculate direct material, direct labor and variable manufacturing overhead variances. Forrest Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for August when Forrest made 4,500 units: Standard: Budgeted variable overhead $21,875 Budgeted fixed overhead $38,750 Budgeted direct labor hours 12,500 hours Budgeted output 5,000 units Actual: Direct labor hours 10,000 Variable overhead $26,250 Fixed overhead $38,000 Requirement: Calculate direct material, direct labor and variable manufacturing overhead variances.
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Answer Direct Labour Variance Standard Labour hours Direct Variable Ove... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Posted Date:
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