Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 22 Sep 2017 My Price 7.00

Klemmens Manufacturing

II.    Overhead Variances

Klemmens Manufacturing has the following standard cost sheet for one of its products:

 

Direct materials (2 ft. @ $5)

$10

Direct labor (0.5 hr. @ $10)

5

Fixed overhead (0.5 hr. @ $2)*

1

Variable overhead (0.5 hr. @ $4)

2

Standard unit cost

$18

* Rate based on budgeted fixed overhead of $5,000 and expected activity of 2,500 direct labor hours.

During the most recent year, the following actual results were recorded:

 

Production

6,000 units

Direct materials (11,750 ft. purchased and used)

$61,100

Direct labor (2,900 hrs.)

29,580

FOH

6,000

VOH

10,500

 

 

 

 

 

 

 

Required:

Compute the following variances for Klemmens Manufacturing:

1.        Variable overhead spending and efficiency variances

2.        Fixed overhead spending and volume variances

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Sep 2017 06:09 PM My Price 7.00

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