Question

please assist with rhe information provided:

Direct materials (30 lba. @ $4.40 per Ib.) Direct labor (6 hrs. @ $14 per hr.) Factory overhead-variable (6 hrs. @ $e per hr.) Factory overhead-fixed (6 hrs. @ $11 per hr.) Total standard cost $132.00 84.00 48.00 66.00 $330.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. Operating Levels 706 809 42,000 48,000 252.000 288,000 905 51,000 324,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $3,168,000 $3,168,000 $3,168,000 $2,016,000 $2,304,000 $2,592,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs. Direct materials (1,620,000 lbs. $4.40 per Tb.) Direct labor (324, 000 hrs. @ $14 per hr.) Factory overhead (324,000 hrs. @ 519 per hr.) Total standard cost $ 7, 128,000 4,536,000 6,156,000 $17,020,000 Actual costs incurred during the current quarter follow Direct materiala (1,339,000 Ibe. $6.20 per lb.) Direct Labor (265,000 hrs. $12.00 per h.) Pixed Endley overhead conta Variable factory overhead gosto Total actul goste $ 8,301,000 3,180,000 2,442.900 2,736.900 $16, 661, 600

Answer 1

Actual Cost		Flexible Budget		Standard Cost
AH	x	AVR		AH	x	SVR		SH	x	SVR
265,000	x	10.33		265000	x	8		252,000	x	8
	2,736,900				2,120,000				2,016,000
			616,900				104,000
Variable overhead spending Variance		616,900	Unfavourable
Variable OH efficiency Variance	104,000	Unfavourable
Total Voh variance		720,900	Unfavourable
Actual Fixed OH Cost		Budgted Overhead		Standard Cost(FOH Applied)
AH	x	AFR						SH	x	SFR
265,000	x	9.22						252,000	x	11
	2,442,900				3,168,000				2772000
			725,100				396,000
Fixed overhead spending variance		725,100	Favorable
Fixed overhead Volume variance		396,000	Unfavourable
Total Fixed OH cost variance		329,100	Favorable
Overhead Controllable Variance
Variable overhead spending variance	616,900	Unfavourable
Variable overhead efficiency variance	104,000	Unfavourable
Fixed overhead spending variance	725,100	Favorable
Total overhead controllable variance	4,200	Favorable