Question

Required information The following Information applies to the questions displayed below] Sedona Company set the following standard costs for one unlt of Its product for 2017 Direct aterial (20 Ibs. $3.30 per Ib. Direct labor (15 hrs. $6.00 per hr.) Eactory variable overhead (15 hrs. $2.80 per hr.) Factory fixed overhead (15 hs $1.20 per hr.) Standard cost 66.00 90.00 42.00 1B.00 $216.00 The $400 ($280-$120) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 58,000 unlts per month. The following monthly flexible budget information is alsó avallable. 753 43,500 Plexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 40, 600 609,000 46, 400 696,000 652, 500 $1,705, 200 $1,827,000 $1,948, 800 Variable ovethead Fixed overhead Total overhead 783,000 $2, 488, 200 783,000 $2,731,800 783, 000 $2, 610,000 During the current month, the company operated at 70% of capacity, employees worked 575,000 hours, and the following actual overhead costs were Incurred. $1, 624, 000 866,000 Variable overhead costs Fixed overhead costs Total overhead conts 2,490,000 AH Actual Hours SH # Standard Hours AVR Actual Variable Rate SVR Standard Varlable Rate SFR Standard Fixed Rate 1. Compute the variable overhead spending and efficiency varlances < Prev

Answer 1