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Category > Accounting Posted 17 Aug 2017 My Price 11.00

Mankato Control Company

Mankato Control Company, which manufactures electrical switches, uses a standard-costing system.
The standard production overhead costs per switch are based on direct-labor hours and are as follows:

  

  
   Variable overhead (5 direct-labor hours @ $12.00 per hour) $ 60  
   Fixed overhead (5 direct-labor hours @ $20.00 per hour)*   100  
       
        Total overhead $ 160  
       
 
*Based on practical capacity of 307,000 direct-labor hours per month.

  

The following information is available for the month of October.

  

Ac€?c Variable overhead costs were $5,220,000.
Ac€?c Fixed overhead costs were $7,725,000.
Ac€?c 58,400 switches were produced, although 61,400 switches were scheduled to be produced.
Ac€?c 289,000 direct-labor hours were worked at a total cost of $5,225,000.

  

Required:

Compute the variable-overhead spending and efficiency variances and the fixed-overhead budget and volume variances for October. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Variable-overhead spending variance    
Variable-overhead efficiency variance    
Fixed-overhead budget variance    
Fixed-overhead volume variance

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 07:08 PM My Price 11.00

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