OVERHEAD VARIANCES FSI had the following ACTUAL fixed and variable overhead costs during the month of...
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OVERHEAD VARIANCES FSI had the following ACTUAL fixed and variable overhead costs during the month of October. 14,000 of direct labor were used to produce 30,000 shirts. Variable Overhead Fixed Overhead Total Overhead To produce one shirt, FSI determined that it would take 0.5 labor hours. FSI budgets variable and fixed overhead based on direct labor hours. Overhead rates are based on a production capacity level of 90%. .FSI's budgeted overhead rates are based on the following production capacity: Production in units Direct labor hours Budgeted Variable Factory Overhead Budgeted Fixed Factory Overhead $392,000 $210,000 $602,000 Production Capacity Levels 70% 80% 90% 26,250 30,000 33,750 13,125 15,000 16,875 $393,750 $450,000 $506,250 $185,625 $185,625 $185,625 OVERHEAD VARIANCES FSI had the following ACTUAL fixed and variable overhead costs during the month of October. 14,000 of direct labor were used to produce 30,000 shirts. Variable Overhead Fixed Overhead Total Overhead To produce one shirt, FSI determined that it would take 0.5 labor hours. FSI budgets variable and fixed overhead based on direct labor hours. Overhead rates are based on a production capacity level of 90%. .FSI's budgeted overhead rates are based on the following production capacity: Production in units Direct labor hours Budgeted Variable Factory Overhead Budgeted Fixed Factory Overhead $392,000 $210,000 $602,000 Production Capacity Levels 70% 80% 90% 26,250 30,000 33,750 13,125 15,000 16,875 $393,750 $450,000 $506,250 $185,625 $185,625 $185,625
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