Instant Manufacturing Company has the following information for this year. Standard factory overhead based on normal monthly activity of 40,000 direct labor-hours for 40,000 units is:
Actual costs for 38,000 labor-hours were $196,000, of which $76,000 was fixed. Actual production was 38,400 units.
Calculate the following variances:
a. Variable overhead spending
b. Variable overhead efficiency
c. Fixed overhead budget

Question

Instant Manufacturing Company has the following information for this year. Standard factory overhead based on normal monthly activity of 40,000 direct labor-hours for 40,000 units is:
  Actual costs for 38,000 labor-hours were $196,000, of which $76,000 was fixed. Actual production was 38,400 units.
Calculate the following variances:
a. Variable overhead spending
b. Variable overhead efficiency
c. Fixed overhead budget

Quizplus · Accepted Answer

The Answer of Instant Manufacturing Company has the following information for this year. Standard factory overhead based on normal monthly activity of 40,000 direct labor-hours for 40,000 units is:
  Actual costs for 38,000 labor-hours were $196,000, of which $76,000 was fixed. Actual production was 38,400 units.
Calculate the following variances:
a. Variable overhead spending
b. Variable overhead efficiency
c. Fixed overhead budget

Instant Manufacturing Company Has the Following Information for This Year