Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 180.000 direct-labor hours as follows:
Standard costs per unit (one box of paper): | |
Variable overhead (2 hours @ $3 per hour) | $ 6 |
Fixed overhead (2 hours @ $5 per hour) | 10 |
Total | $16 |
During April. 90,000 units were scheduled for production: however, only 80.000 units were actually produced. The following data relate to April.
1. Actual direct-labor cost incurred was $1,567,500 for 165,000 actual hours of work.
2. Actual overhead incurred totaled $ 1,371,500. of which $511.500 was variable and $860,000 was fixed.
Required: Prepare two exhibits similar to Exhibits 11–6 and 11–8 in the chapter, which show the following variances. State whether each variance is favorable or unfavorable, w here appropriate.
1. Variable-overhead spending variance.
2. Variable-overhead efficiency variance.
3. Fixed-overhead budget variance.
4. Fixed-overhead volume variance.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.