Standard variable overhead rate per hour $1 Standard fixed overhead rate per hour $2 Planned monthly activity
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Question:
Standard variable overhead rate per hour | $1 |
Standard fixed overhead rate per hour | $2 |
Planned monthly activity | 40,000 machine hours |
Actual production completed | 82,000 units |
Standard machine processing time | Two units per hour |
Actual variable overhead | $37,000 |
Actual total overhead | $121,000 |
Actual machine hours worked | 40,500 |
All of the company's overhead is variable or fixed in nature.
Required:
1. Calculate the spending and efficiency variances for variable overhead.
2. Calculate the SPENDING and PRODUCTION volume variances for fixed overhead.
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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