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Category > Accounting Posted 13 Aug 2017 My Price 13.00

Dinkel Manufacturing Corporation

Please calculate the Overhead Controllable Variance and the Overhead Volume Variance from the following information. I need to know HOW you came up with this info, so I can backtrack the solution.

 

Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2012.

Costs and Production Data

Actual

Standard
Raw materials unit cost $2.25 $2.00
Raw materials units used 10,600 10,000
Direct labor payroll $122,400 $120,000
Direct labor hours worked 14,400 15,000
Manufacturing overhead incurred $184,500  
Manufacturing overhead applied   $189,000
Machine hours expected to be used at normal capacity   42,500
Budgeted fixed overhead for June   $51,000
Variable overhead rate per hour   $3.00
Fixed overhead rate per hour   $1.20

Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.

Compute the overhead controllable variance and the overhead volume variance. PLEASE SHOW YOUR WORK! I am not just interested in the answer. I need to know how you got it.

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Maurice Tutor
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Status NEW Posted 13 Aug 2017 09:08 AM My Price 13.00

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