Meal Delivery Fast (MDF) operates a meal home-delivery service. It has agreements with 20 restaurants to...

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Meal Delivery Fast (MDF) operates a meal home-delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who phone or fax orders to MDF. MDF allocates variable and fixed overhead costs on the basis of 3 delivery time. MDF's owner, Sam Clark, obtains the following information for May 2017 overhead costs: Pg Dr Meal Delivery Fast (May 2017) Actual Static Del Budget 12,000 Results Output units (number of deliveries) Hours per delivery Hours of delivery time Variable overhead cost per hour of delivery time 8,700 0.70 5,650 $1.25 Variable overhead costs $10,170 Fixed Overhead costs $39,400 $33,600 Required: A. Compute spending and efficiency variances for MDF's variable overhead in May 2017. B. Compute the spending variance and production-volume variance for MDF's fixed overhead in May 2017. C. Comment on MDF's overhead variances (interpretations). Meal Delivery Fast (MDF) operates a meal home-delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who phone or fax orders to MDF. MDF allocates variable and fixed overhead costs on the basis of 3 delivery time. MDF's owner, Sam Clark, obtains the following information for May 2017 overhead costs: Pg Dr Meal Delivery Fast (May 2017) Actual Static Del Budget 12,000 Results Output units (number of deliveries) Hours per delivery Hours of delivery time Variable overhead cost per hour of delivery time 8,700 0.70 5,650 $1.25 Variable overhead costs $10,170 Fixed Overhead costs $39,400 $33,600 Required: A. Compute spending and efficiency variances for MDF's variable overhead in May 2017. B. Compute the spending variance and production-volume variance for MDF's fixed overhead in May 2017. C. Comment on MDF's overhead variances (interpretations).

Answer rating: 100% (QA)

Budgeted FOH for May 2017 33600 Budgeted number of home deliveries EMNs output measure 12000 Budgeted FOH rate per delivery for May 2017 280 Budgeted ... View the full answer