Question

Using the data shown in E8-16, calculate the following overhead variances:
In e8-16,
Production for the month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 units
Direct labor hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18,500 hours
Factory overhead incurred for:
Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,500
Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$52,000

a. Spending variance.
b. Production-volume variance.
c. Efficiency variance.
d. Was the factory overhead under-or over-applied? By what amount?



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  • CreatedMay 05, 2014
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