Below is some information on Pillarcat Co, which applies factory overhead based on machine hours and uses
Question:
Below is some information on Pillarcat Co, which applies factory overhead based on machine hours and uses a standard costing system. Assume the denominator value of machine hours is used to allocate overhead cost reflects the expected machine hours used for budgeting purposes.
Actual total factory overhead: $24000
Actual fixed overhead expenses: $10000
Budgeted Fixed overhead expenses: $11000
Actual Machine hours: 5,000
Standard machine hours for the units manufactured: 4800
Denominator Volume-Machine hours: 5500
Standard variable overhead rate per machine hour: $3
What is the variable manufacturing overhead sales volume variance F/U, VMOH spending variance F/U, VMOH efficiency variance F/U, journal entry to record variable manufacturing overhead variances incurred during the period.