Woods, Inc.'s budget included the following overhead costs for the current year assuming operations at 80% of
Question:
Woods, Inc.'s budget included the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units:
The standard cost per unit when operating at this same 80% capacity level is:
The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were:
Calculate the following variances and indicate whether each is favorable or unfavorable.
Direct materials:
Price variance________________
Quantity variance________________
Direct labor:
Rate variance________________
Efficiency variance________________
Variable overhead:
Spending variance________________
Efficiency variance________________
Fixed overhead
Spending variance________________
Volume variance________________
Step by Step Answer:
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds