Reference no: EM133654264
Question One
FIXED OVERHEAD SPENDING AND VOLUME VARIANCES, COLUMNAR AND FORMULA APPROACHES
A company provided the following information:
Standard fixed overhead rate (SFOR) per direct labour hour $7.00
Actual fixed overhead rate (AFOR) per direct labour hour $6.95
Actual direct labour hours worked (AH) 36,100
Actual production in units 12,000
Standard hours allowed for actual units produced (SH) 36,000
Required:
Using the columnar approach, calculate the fixed overhead spending and efficiency variances.
Using the formula approach, calculate the fixed overhead spending variance.
Using the formula approach, calculate the fixed overhead efficiency variance.
Calculate the total fixed overhead variance.