Mauve Company uses a standard cost system that applies manufacturing overhead to units of product on...

 

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Mauve Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHS). The following data pertain to last month: Actual Hours Worked Budgeted Fixed Overhead Costs Actual Fixed Overhead Costs Standard Hours Allowed 2,400 DLHS $10,000 $10,400 2,500 DLHS Predetermined Overhead Rate $5 per DLH Calculate Fixed Overhead Budget variance and Fixed Overhead Volume variance. Mauve Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHS). The following data pertain to last month: Actual Hours Worked Budgeted Fixed Overhead Costs Actual Fixed Overhead Costs Standard Hours Allowed 2,400 DLHS $10,000 $10,400 2,500 DLHS Predetermined Overhead Rate $5 per DLH Calculate Fixed Overhead Budget variance and Fixed Overhead Volume variance.

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