Question

The peter Corporation , which manufactures computer switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours @ $12 per direct manufacturing labor hour) $ 60
Fixed overhead (5 hours @ $15* per direct manufacturing labor hour) 75
Total overhead per switch $135
*Based on capacity of 200,000 direct manufacturing labor hours per month.
The following information is available for the month of December:
46,000 switches were produced although 40,000 switches were scheduled to be produced.
225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
Variable manufacturing overhead costs were $2,750,000.
Fixed manufacturing overhead costs were $3,050,000.

The fixed overhead production-volume variance for December was?
What amount should be credited to the Allocated Manufacturing Overhead Control account for the month of December?
Under the 2-variance method, the flexible-budget variance for December was?
Under the 3-variance method, the spending variance for December was?

Answer 1