Prado Company applies fixed manufacturing overhead costs to products based on direct labor hours.Information for the month of April appears below.Prado's expected to produce and sell 500 units for the month.

Calculate the fixed overhead spending variance and production volume variance.Clearly label each variance as favorable or unfavorable.

Question

Prado Company applies fixed manufacturing overhead costs to products based on direct labor hours.Information for the month of April appears below.Prado's expected to produce and sell 500 units for the month.
  
Calculate the fixed overhead spending variance and production volume variance.Clearly label each variance as favorable or unfavorable.

Quizplus · Accepted Answer

The Answer of Prado Company applies fixed manufacturing overhead costs to products based on direct labor hours.Information for the month of April appears below.Prado's expected to produce and sell 500 units for the month.
  
Calculate the fixed overhead spending variance and production volume variance.Clearly label each variance as favorable or unfavorable.

Prado Company Applies Fixed Manufacturing Overhead Costs to Products Based