Pampered Pets, Inc., makes embellished accessories primary for dogs. For $2017,$ budgeted variable overhead is $$\mathrm{}90,000$ for $\mathrm{}20,000$ direct labor$-$hours. Budgeted total overhead is $$100,000$ at $8,000$ direct labor$-$hours. The standard costs allocated to the production of these accessories included a total overhead rate of $80\%$ of standard direct labor costs. In May $2017,$ Pampered Pets incurred total overhead of $$133,000$ and direct labor costs of $$178,125.$ The direct labor efficiency variance was $$7,500$ unfavorable. The direct labor flexible$-$budget variance was $$1,875$ favorable. The standard labor price was $$15$ per hour. The production$-$volume variance was $$16,000$ favorable. 

 

$1.$ Compute the direct labor price variance.

$2.$ Compute the denominator level and the spending and efficiency variances for total overhead.

$3.$ Describe how individual variable overhead items are controlled from day to day. Also, describe how individual fixed overhead items are controlled.

Answer rating: 100% (QA)

Direct Labor Price Variance Direct Labor Price Variance Actual Hours Worked Actual Rate Actual Hours Worked Standard Rate Given Actual Hours Worked 17... View the full answer