Refer to the information in Problem 23-4B.

Required
Compute these variances: 

(a) Variable overhead spending and efficiency, 

(b) Fixed overhead spending and volume, and 

(c) Overhead controllable.

Problem 23-4B

Kryll Company set the following standard costs per unit for its single product.

Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company’s capacity of 60,000 units per quarter. The following additional information is available.

During the current quarter, the company operated at 70% of capacity and produced 42,000 units; direct labor hours worked were 250,000. Units produced were assigned the following standard costs.

Actual costs incurred during the current quarter follow.

Transcribed Image Text:

Direct materials (25 lbs. @ $4 per Ib.). Direct labor (6 hrs. @ $8 per hr.). Variable overhead (6 hrs. @ $5 per hr.). Fixed overhead (6 hrs. @ $7 per hr.) Standard cost per unit ..... $100 48 30 42 $220