Jazzy Jeans applies manufacturing overhead using machine hours as the cost driver.
Fixed MOH costs are budgeted at $1,000,000 per month.
Variable MOH costs are budgeted at $52.80 per machine hour.
It takes .25 machine hours to produce a pair of jeans.

Jazzy budgeted production of 10,000 pairs of jeans in December.

Actual activity in November:

Total Variable MOH Costs	$134,767.50
Total Fixed MOH Costs	$988,000.00
Actual pairs of jeans made	10,500
Actual machine hours	2,550

1. What was the variable over head spending variance for the month? AQ(AP-SP)

2. What was the variable overhead efficiency variance for the month? SP(AQ-SQA)

3. How much fixed MOH was applied in December?

4. What was the fixed overhead spending variance for the month?

5. What was the fixed overhead volume variance for the month?

Answer rating: 100% (QA)

Answer 1 VOH spending variance Standard cost Actual cost ... View the full answer