Memoirs, Inc., produces several different styles and sizes of picture frames. The following activity describes Memoirs’ overhead costs during March:

Requirements:

1. Calculate the variable overhead rate and efficiency variances for the month of March.
2. Calculate the fixed overhead budget and volume variances for the month of March.
3. Calculate the total fixed overhead variance for the month of March.

Transcribed Image Text:

Number of frames produced................. Predetermined variable MOH rate... Predetermined fixed MOH rate... Budgeted fixed manufacturing overhead.... Actual direct labor hours........... Actual variable manufacturing overhead........ Actual fixed manufacturing overhead... Standard direct labor allowed per unit........ 25,000 frames $ 6.00 per DL hour $ 12.00 per DL hour $70,000 6,500 hours $40,625, resulting in an actual rate of $6.25* per DL hour $68,000 0.25 hours per frame