Overhead is applied on the basis of standard machine hours

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Reference no: EM13481672

Dinkel Manufacturing Corporation accumulatesthe following data relative to jobs started and finished during themonth of June 2008.

Costs and Production Data	Actual		Standard
Raw materials unit cost	$2.25	$2.00
Raw materials units used	10,600	10,000
Direct labor payroll	$122,400	$120,000
Direct labor hours worked	14,400	15,000
Manufacturing overhead incurred	$184,500
Manufacturing overhead applied	$189,000
Machine hours expected to be used at normalcapacity	42,500
Budgeted fixed overhead for June	$51,000
Variable overhead rate per hour	$3.00
Fixed overhead rate per hour	$1.20

Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct laborhour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.

Compute all of the variances for (1) directmaterials and (2) direct labor.

Compute the total overhead variance.

Reference no: EM13481672

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