Question

Goldman Company manufactures shirts. During June, Goldman made 1,500 shirls but had budgeted production at 1,575 shirts. Goldman gathered the following additional dala: :: (Click on the icon to view the data.) Read the requirements i Data Table 13. Calculate the variable overhead cost variance. Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U) = VOH Cost Variance Variable overhead cost standard Direct labor efficiency standard Actual amount of direct labor hours Actual Cost 14. Actual Quantity Sele Standard Cost Standard Quantity erhead efficiency variance. $0.10 per DLHO 3.50 DLHr per shirt 5,360 DLHO $2,144 $0.55 per DLHO $3,032 $3,157 Actual cost of variable overhead Fixed overhead cost standard Budgeted fixed overhead Actual cost of fixed overhead the amounts and compute the efficiency variance for variable overhead and identily whether the variance is favorable (F) or unfavorable (U). TE VOH Efficiency Variance 15. Calculate the total variable overhead variance Print Done The total variable overhead variance is 16. Calculate the fixed overhead cost variance Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U). = Fixed Overhead Cost Variance Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

13) Variable overhead cost variance

(	Actual cost	-	Standard cost	)	*	Actual quantity	=	VOH Cost Variance
(	$0.40	-	0.10	)	*	5360	=	$1608	Unfavorable (U)

Actual cost= $2144/5360= $0.40 per DLHr

14) Variable overhead efficiency variance

(	Actual quantity	-	Standard quantity	)	*	Standard cost	=	VOH Efficiency Variance
(	5360	-	5250	)	*	$0.10	=	$11	Unfavorable (U)

Standard quantity= 1500 shirts*3.50 DLHr per shirt= 5250

15) Total Variable overhead variance

The total variable overhead variance is

$1619

Unfavorable (U)

Total variable overhead variance= $1608 U+11 U= $1619 Unfavorable (U)

16) Fixed overhead cost variance

Actual fixed overhead	-	Budgeted fixed overhead	=	Fixed Overhead Cost Variance
$3157	-	3032	=	$125	Unfavorable (U)

17) Fixed overhead volume variance

Standard fixed overhead cost	*	Standard quantity	=	Overhead allocation to production
$0.55	*	5250	=	2887.5

Standard quantity= 1500 shirts*3.50 DLHr per shirt= 5250

Budgeted fixed overhead	-	Allocated fixed overhead	=	Fixed Overhead Volume Variance
$3032	-	2887.5	=	$144.5	Unfavorable (U)

18) Total fixed overhead variance

The total fixed overhead variance is

$269.5

Unfavorable

Total fixed overhead variance= $125 U+144.5 U= $269.5 U