Variable and fixed overhead are applied based on Direct Labor HoursStandards Material: 2.5 pounds per unit
Question:
Variable and fixed overhead are applied based on Direct Labor HoursStandards
Material: 2.5 pounds per unit @$4.2 per pound
Labor: 2 hours per unit @$9.5 per hour
Variable OH: 2 hours per unit @$3 per hour
Fixed OH: 2 hours per unit @$3.5 per hour
based on budgeted production of2,700 unitsActuals
Production: 3,000 units produced during the month
Material: 8,200 pounds purchased and used @ $3.85 per pound
Labor: 6,300 direct labor hours @ $10 per hour
Variable OH: $21,450
Fixed OH: $19,450
1.what is Material price variance?
2. what is Material usage (quantity) variance?
3. what is Labor rate variance?
4. Define Labor efficiency variance.
5. what will be Variable overhead spending variance?
6. what will be Variable overhead usage variance?
7.what will be Fixed overhead spending variane?
8.what will be Fixed overhead volume variance?
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello