Calculate the fixed overhead spending variance for May

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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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