Standard cost system overhead variances
Rogers Manufacturing produces a component part used throughout the computer industry.Variable overhead is allocated to production at a rate of $5 per unit.The company's monthly fixed overhead costs average $30,000.Normal output levels average 40,000 units per month.During April,Rogers produced 50,000 units and incurred actual overhead costs of $280,000.
(a)Total overhead applied to production in April amounted to $________.
(b)Total overhead budgeted in April for the level of output achieved amounted to $________.
(c)April's overhead spending variance was $________ (favorable/unfavorable).
(d)April's overhead volume variance was $________ (favorable/unfavorable).
(e)For which of Rogers' two overhead variances is the production manager held responsible?

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The Answer of Standard cost system overhead variances
Rogers Manufacturing produces a component part used throughout the computer industry.Variable overhead is allocated to production at a rate of $5 per unit.The company's monthly fixed overhead costs average $30,000.Normal output levels average 40,000 units per month.During April,Rogers produced 50,000 units and incurred actual overhead costs of $280,000.
(a)Total overhead applied to production in April amounted to $________.
(b)Total overhead budgeted in April for the level of output achieved amounted to $________.
(c)April's overhead spending variance was $________ (favorable/unfavorable).
(d)April's overhead volume variance was $________ (favorable/unfavorable).
(e)For which of Rogers' two overhead variances is the production manager held responsible?

Standard Cost System Overhead Variances