Which manufactures electrical switches

Reference no: EM13877248

Problem 3: OH Cost Variance Analysis

Jake Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

Variable overhead (5 hours @ $12 per direct manufacturing labor hour) $ 60

Fixed overhead (5 hours @ $15* per direct manufacturing labor hour) 75

Total overhead per switch $135

*Based on capacity of 200,000 direct manufacturing labor hours per month.

The following information is available for the month of November:

46,000 switches were produced although 40,000 switches were scheduled to be produced.
225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
Variable manufacturing overhead costs were $2,750,000.
Fixed manufacturing overhead costs were $3,050,000.
Find the variable overhead spending and efficiency variances for November.

The fixed overhead budget variance for November.

Reference no: EM13877248

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