Reference no: EM131765282

Problem - Megan Corp.                                                                                               

"The following data are available for the Megan Corp. finishing department for the current year. The department makes a single product that requires three hours of labor per unit of finished product. Budgeted volume for the year was 30,000 direct labor hours."

Budgeted Volume	30,000		Direct Labor Hours
hrs of Labor per unit	3
Overhead Efficiency Overhead	$4,000.00	U
Budgeted Fixed Overhead	$900,000.00
Number of units produced	11,000
Standard Direct Labor Wage Rate	$15.00
Total Overabsorbed overhead variance	$92,000.00	F
Direct Labor efficiency variance	$15,000.00	U

a. Calculate

Acutal Overhead Incurred

Overhead spending Variance

Actual # of direct labor hours

Budgeted variable overhead rate per direct labor hour

Overhead rate per direct labor hour

Overhead volume variance

Actual direct labor wage rate

b. Write a one-paragraph report summarizing the results of the operations.