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Argosy University/ Phoniex University/
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Phoniex University
Oct-2001 - Nov-2016
51.   LO.3 (OH variances with unknowns) During December 2010, Amin Corp. manu- factured products requiring 8,000 standard labor hours. The following variance and actual information is available:
Â
Labor rate variance                    $  4,500 U
Labor efficiency variance               12,000 U
Actual variable overhead              162,000
Actual fixed overhead                    84,000
Â
Amin Corp.’s standard costs for labor and overhead were set at the beginning of 2010 and have remained constant through the year as follows:
Â
|
Direct labor (4 hours X $12 per hour) Factory overhead (10,000 DLHs expected capacity) |
$ Â 48 |
|
Variable (4 hours X $16 per direct labor hour) |
64 |
|
Fixed (4 hours X $9 per direct labor hour) |
   36 |
|
Total unit conversion cost |
$148 |
Â
Calculate the following unknown amounts:
a.    Number of units manufactured
b.   Total applied factory overhead
c.    Volume variance
d.   Variable overhead spending variance
e.    Variable overhead efficiency variance
f.     Total actual overhead
Â
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