Question: Question 6 (2 points) Use the following information to answer the next four questions: Karim's Furniture uses variance analysis to evaluate manufacturing overhead in its

Question 6 (2 points) Use the following information to answer the next four questions: Karim's Furniture uses variance analysis to evaluate manufacturing overhead in its table factory. The company uses direct labor (DL) hours to allocate MOH costs. The information for overhead expenditures during the month of May is as follows: Static budgeted output units 14,000 tables Static budgeted FMOH $22,400 Application rate for VMOH $3.00 per DL hour Application rate for FMOH ? Standard quantity of DL hours per table 0.2 hours Actual Results: Fixed manufacturing costs incurred $24,000 Direct manufacturing labour hours used 4,000 hours Variable manufacutring costs incurred $11,000 Actual units manufactured 15,000 tables Calculate the VMOH spending variance. Enter your answer as a POSITIVE number if the variance is UNFAVOURABLE. Enter your answer as a NEGATIVE number if the variance is FAVOURABLE. Do not include any dollar signs, commas, decimal places and/or spaces in your answer. Your answer should only include digits. For example, if the correct answer is 1021. you should enter 1021 as your answer. If you enter $1021 or 1.021 or 1 021 or $1021.00, your answer will be marked wrong 90 bou ra oo bo %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
