Question:Pointe Claire Company applies overhead based on direct labour
hours. Two direct labour hours are required...
Question
Pointe Claire Company applies overhead based on direct labour
hours. Two direct labour hours are required...
Pointe Claire Company applies overhead based on direct labour
hours. Two direct labour hours are required for each unit of
product. Planned production for the period was set at 8,300 units.
Manufacturing overhead is budgeted at $124,500 for the period (20%
of this cost is fixed). The 16,290 hours worked during the period
resulted in the production of 8,000 units. The variable
manufacturing overhead cost incurred was $100,800 and the fixed
manufacturing overhead cost was $28,400.
Calculate the variable overhead spending variance for the
period.
Variable overhead spending variance
$
Neither favourable nor unfavourableFavourableUnfavourable
Calculate the variable overhead efficiency (quantity) variance
for the period.
Variable overhead efficiency variance
$
FavourableNeither favourable nor unfavourableUnfavourable
Calculate the fixed overhead budget (spending) variance for the
period.
Fixed overhead budget variance
$
Neither favourable nor unfavourableUnfavourableFavourable
Calculate the fixed overhead volume variance for the
period.
Fixed overhead volume variance
$
Neither favourable nor unfavourableFavourableUnfavourable