Reference no: EM132511104
Please put correct answer in the underlined space provided. ABC Company has the following standards and flexible budget data:
Standard variable overhead rate $ 4.80 per direct labor hour
Standard quantity of direct labor 1.60 hours per unit of output
Budgeted fixed overhead rate $ 90,000
Budgeted output 22,500 units
Standard variable overhead $ 9.60 per unit
Standard fixed overhead $ 3.20 per unit
Actual results for November are given below:
Actual output 27,000 units
Actual variable overhead $ 324,000
Actual fixed overhead $ 95,400
Actual direct labor 50,400
Direct labor hours
Required:
Question 1: Compute the following variances and state if they are favorable or unfavorable.
a) Variable manufacturing overhead spending variance
b) Variable manufacturing overhead efficiency variance
c) Fixed manufacturing overhead spending variance
d) Fixed manufacturing overhead volume variance
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