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 December:

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 overhead spending variance for the month?

2. What was the variable overhead efficiency variance for the month?

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 5 VOH spending variance Standard cost Actual cost 10500 ... View the full answer