Solution-Calculate the fixed overhead spending variance for

Calculate the fixed overhead spending variance for May

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Reference no: EM133104818

Question - Sheffield Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Sheffield's controller. The company applies overhead on the basis of machine hours.

	Annual Budget	May Budget
Variable manufacturing overhead	$2,364,000	$212,000
Fixed manufacturing overhead	$1,205,280	$100,440
Direct labor hours	53,160	4,430
Machine hours	236,400	21,200

During the month of May, Sheffield used 4,420 direct labor hours and 21,940 machine hours. The flexible budget for the month allowed 4,300 direct labor hours and 21,490 machine hours. Actual fixed manufacturing overhead incurred was $107,400; variable manufacturing overhead incurred was $217,900.

Required -

(a) Calculate the variable overhead spending and efficiency variances for May.

(b) Calculate the fixed overhead spending variance for May.

Reference no: EM133104818

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Calculate the fixed overhead spending variance for May

Reference no: EM133104818

Reference no: EM133104818

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