Compute overhead variances using a four-variance

Reference no: EM133611921

OH variances

The manager of the Texas Department of Transportation has determined that it typically takes 30 minutes for the department's employees to register a new car. In Bexar County, the predetermined fixed overhead rate was computed on an estimated 12,000 direct labor hours per month and is $9 per direct labor hour, whereas the predetermined variable overhead rate is $3 per direct labor hour.
During July, 22,560 cars were registered in Bexar County, and 11,400 direct labor hours were worked in registering those vehicles. For the month, variable overhead was $33,240 and fixed overhead was $108,960.

Note: In answering the following questions, do not use negative signs with your answers.

a. Compute overhead variances using a four-variance approach.

Reference no: EM133611921

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