Reference no: EM132537200

Question 1: The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output .............. 5.6 hours

Standard variable overhead rate ................ $19.15 per hour

The following data pertain to operations for the last month:

Actual hours ................................................ 5,100 hours

Actual total variable overhead cost ............. $99,195

Actual output ............................................... 1,100 units

Calculate the Variable MOH Spending and Efficiency Variance. Explain your answer

Question 2: Explain which Material Variance (Quantity or Price) is calculated first and why is there a specific order in which these calculations are made. Discuss the responsibility of Production Manager and Purchasing Manager in relation to the calculation of Material Variances.