Question: Hello, Please help so I can learn and understand this problem. Thank you! The Stanton Supply Company produces cleaning equipment for professional cleaners. At the

Hello,

Please help so I can learn and understand this problem. Thank you!

The Stanton Supply Company produces cleaning equipment for professional cleaners. At the start of the year, Stanton estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $301,000, based on a volume of 66,000 units. The detail for the overhead estimates follows:

Variable Overhead
Indirect material ($8) $ 528,000
Utilities ($2) 132,000
Maintenance ($3)

198,000
Total variable overhead $ 858,000
Fixed Overhead
Supervisor salaries $ 126,000
Depreciation 150,000
Other fixed overhead

25,000
Total fixed overhead $ 301,000
Total overhead costs $ 1,159,000

Actual costs for the year are as follows:

Actual Production 56,000 units
Variable Overhead
Indirect material $ 468,500
Utilities 95,000
Maintenance

170,000
Total variable overhead $ 733,500
Fixed Overhead
Supervisor salaries $ 127,000
Depreciation 145,000
Other fixed overhead

26,700
Total fixed overhead $ 298,700
Total overhead costs $ 1,032,200

(a1) Calculate the controllable overhead variances for variable and fixed overhead. (Enter all variances as a positive number.)

Stanton Supply Company Actual Units Produced (56,000)
Variable Overhead Actual Flex Budget Variance
Indirect material $enter a dollar amount $enter a dollar amount $enter a dollar amount

select an option UnfavorableNeither Unfavorable nor FavorableFavorable

Utilities

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option UnfavorableFavorableNeither Unfavorable nor Favorable

Maintenance

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option Neither Unfavorable nor FavorableFavorableUnfavorable

Total variable overhead

enter a total amount

enter a total amount

enter a total amount

select an option FavorableNeither Unfavorable nor FavorableUnfavorable

Fixed Overhead
Supervisor salaries

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option FavorableUnfavorableNeither Unfavorable nor Favorable

Depreciation

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option Neither Unfavorable nor FavorableFavorableUnfavorable

Other fixed overhead

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an option UnfavorableNeither Unfavorable nor FavorableFavorable

Total fixed overhead

enter a total amount

enter a total amount

enter a total amount

select an option FavorableUnfavorableNeither Unfavorable nor Favorable

Total Overhead costs $enter a total amount for this statement $enter a total amount for this statement $enter a total amount for this statement

enter a total amount for this statement Neither Unfavorable nor FavorableUnfavorableFavorable

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