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Use the following information of Alfred Industries. Standard manufacturing overhead based on normal monthly volume: Fixed...

Use the following information of Alfred Industries. Standard manufacturing overhead based on normal monthly volume: Fixed ($301,700 ÷ 20,000 units) $ 15.09 Variable ($100,000 ÷ 20,000 units) 5.00 $ 20.09 Units actually produced in current month 18,000 units Actual overhead costs incurred (including $300,000 fixed) $ 383,800 Compute the overhead spending variance and the volume variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

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Answer #1
Alfred Industries
Spending variances
Actual Flexible Budget Spending variances
Units 18000 18000
Fixed Manufacturing overhead 300000 301700 1700 F
Variable Manufacturing overhead 83800 90000 6200 F
(18000*5)
Alfred Industries
Spending variances
Planning Budget Flexible Budget Volume variances
Units 20000 18000
Fixed Manufacturing overhead 301700 301700 0 None
Variable Manufacturing overhead 100000 90000 10000 F
0 0
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