Reference no: EM132546428

Manufacturing overhead variances

Orion Inc. uses a standard costing system. Overhead costs are applied on the basis of direct labour hours.

Budgeted data for July are as follows:

Static Budget

Units Produced                                            126,000

Direct Labour Hours                                      56,700

Total Budgeted Manufacturing Overhead Costs    $130,410

Predetermined Fixed Manufacturing Overhead Rate $2.00 per DLH

Actual data for July are as follows:

Actual

Units Produced                 115,000

Direct Labour Hours            55,000

Variable Overhead Costs   $ 18,250

Fixed Overhead Costs       $116,200

Required:

Question 1. What is the rate variance for variable overhead.

Question 2. What is the efficiency variance for variable overhead? ­­­

Question 3. What is the Rate variance for fixed overhead?

Question 4. What is the Production volume variance for fixed overhead?