Solution-Compute the variable overhead spending variance

Compute the variable overhead spending variance

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Reference no: EM133178984

Question - The Bartok Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour.

The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March follows:

Number of units produced	6,000
Materials purchased (18,500 yards)	$88,800
Materials used in production (yards)	18,500
Variable overhead costs incurred	$6,380
Fixed overhead costs incurred	$20,400
Direct labor cost incurred ($6.50/hour)	$75,400

Required -

a. Compute the predetermined overhead rate used for the year

b. Compute the budgeted fixed costs for the month.

c. Compute the variable overhead spending variance.

d. Compute the variable overhead efficiency variance.

e. Compute the fixed overhead spending (budget) variance.

f. Compute the production volume variance.

Reference no: EM133178984

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Compute the variable overhead spending variance

Reference no: EM133178984

Reference no: EM133178984

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