# Question: The Stanton Supply Co produces cleaning equipment for professio

The Stanton Supply Co. produces cleaning equipment for professional cleaners. At the start of the year, Stanton estimated variable overhead costs to be \$13 per unit and total fixed overhead costs at \$300,000 based on a volume of 60,000 units. The detail for the overhead estimates follows:
Indirect material (\$8) ........... \$ 480,000
Utilities (\$2) ................ 120,000
Maintenance (\$3) .............. 180,000
Total variable overhead .......... \$ 780,000
Supervisor salaries .............. \$ 125,000
Depreciation ............... 150,000
Total fixed overhead ............ \$ 300,000
Actual costs for the year are as follows:
Actual Production ............. 55,000 units
Indirect material ............. \$ 467,500
Utilities ................. 95,000
Maintenance ............... 170,000
Total variable overhead .......... \$ 732,500
Supervisor salaries ........... \$ 127,000
Depreciation .............. 145,000
Total fixed overhead ........... \$ 298,000

Required
Calculate the controllable overhead variances for variable and fixed overhead. As a manager with limited time, which variances would you focus on?

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