Dustin sports uses a standard cost system in which

Reference no: EM13608985

Dustin Sports uses a standard cost system in which manufacturing overhead (MOH) is applied to units of product on the basis of standard direct labor hours (DLH). The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 variable overhead and $30,000 fixed overhead. The combined predetermined overhead rate, including both fixed and variable components is $2.50 per direct labor hour. The standards call for two (2) direct labor hours per unit of product manufactured. Last year the company's actual production (and sales) was 11,500 units of product and they used (actual) 22,000 direct labor hours. Actual costs were $22,500 variable overhead and $31,000 fixed overhead. Compute each of the following-SHOW YOUR WORK Denominator level of activity: Standard hours allowed for actual output: Variable overhead spending variance: Variable overhead efficiency variance: Fixed overhead budget variance: Fixed overhead volume variance:

Reference no: EM13608985

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