Question: find- variable overhead spending variable, variable overhead efficiency variable, fixed overhead budget variance, and fixed overhead volume variance AND state if they are favourbale or
Question 3 David Ltd is a manufacturing company and produces car lights. During June 2019, the company manufactured 60 000 lights, although 65 000 lights were budgeted. The standard manufacturing overhead costs per light are based on direct labor-hours and are as follows: Fixed overhead (6 hours @560 per hour) $360 Variable overhead (6 hours @$40 per hour) $240 Total overhead $600 Based on capacity of 250 000 direct labour hour per month The additional information available for June 2019 are as follow: Total fixed overhead costs $18,980 000 Total variable overhead costs $10,680 000 280 000 direct labour hours were worked at a total cost of $12,500 000. Required: Calculate the following variances, indicating whether each variance is favourable or unfavourable: find- variable overhead spending variable, variable overhead efficiency variable, fixed overhead budget variance, and fixed overhead volume variance AND state if they are favourbale or not
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