Calculate the variable overhead spending and efficiency

Reference no: EM13572149

Bright Spark Ltd is a manufacture of the electrical switches, and uses a standard costing system. the standard manufacturing overhead costs per seitch are based on labour hours and are as following:

variable overhead (5hours @ $12 per hour) $60
fixed overhead (5 hours @ $18 per hour) 90
total overhead $150
based on capacity of 300000 direct labour hours per month
the following information is available for month of October:
56000 switches were produced, although 60000 switches were budgeted.
275000 direct labour hours were worked at a total cost of $3825000.
variable overhead costs were $3510000.
fixed overhead costs were $5625000

required:calculate the variable overhead spending and efficiency variance and the fixed overhead budget and volume variance for October. Indicate whether each variance if favourable or unfavourable.

Reference no: EM13572149

Questions Cloud

Master chef appliance company manufactures home kitchen : master chef appliance company manufactures home kitchen appliances. the manufacturing process includes stamping final

American trust has a 1000 par value bond with a conversion : american trust has a 1000 par value bond with a conversion price of 40 has a conversion ratio

Flint fabricators inc machines metal parts for the : flint fabricators inc. machines metal parts for the automotive industry. under the traditional manufacturing approach

Raw materials which consist mainly of high-cost electronic : alden inc. has hired you to review its internal controls for the purchase receipt storage and issuance of raw

Calculate the variable overhead spending and efficiency : bright spark ltd is a manufacture of the electrical switches and uses a standard costing system. the standard

You have been hired as a consultant for pristine urban-tech : you have been hired as a consultant for pristine urban-tech zither inc. putz manufacturers of fine zithers. the market

Superior corporation acquired taylor corporation pursuant : superior corporation acquired taylor corporation pursuant to a statutory merger under state law. as a result of the

Identify ethical issues conflicts of interest and : identify ethical issues conflicts of interest and noncompliance with corporate policies and procedures in the enron

The common stock has a current market price of 425 per : walkersville aviation warrants carry the right to buy 10 shares of walkersville common stock at 3.50 per share. the

User Account

All Pages