Solution-Calculate the variable overhead spending variance

Calculate the variable overhead spending variance for April

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Reference no: EM132745331

Question - Uniform Company has developed standard overhead costs based on a capacity of 180 000 machine hours as follows:

Standard costs per unit:

Variable portion 2 hours @ R3 = R6

Fixed portion 2 hours @ R5 = R10

During April, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to April:

Actual machine hours used were 165 000.

Actual overhead incurred totaled R1 378 000 (R518 000 variable plus R860 000 fixed).

All inventories are carried at standard cost.

Required - Calculate the variable overhead spending variance for April.

A. R38 000 unfavourable.

B. R23 000 unfavourable.

C. R38 000 favourable.

D. R15 000 unfavourable.

Reference no: EM132745331

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Calculate the variable overhead spending variance for April

Reference no: EM132745331

Reference no: EM132745331

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