Trumman Company uses a standard cost system. Indirect costs werebudgeted at $193,800 plus $15 per direct labour hour. The overheadrate is based on 10,200 hours. Actual results were:
Standard direct labour hours allowed 8,910 Actual direct labour hours 10,200 Fixed overhead $188,200 Variable overhead $185,400
a.Calculate the fixed overhead production volume variance.
b.Calculate the variable overhead spending variance.
c.Calculate the variable overhead efficiency variance.
Calculate the over- or under-applied overhead.
Trumman Company uses a standard cost system. Indirect costs werebudgeted at $193,800 plus $15 per direct labour hour. The overheadrate is based on 10,200 hours. Actual results were:
| Standard direct labour hours allowed | 8,910 | ||
| Actual direct labour hours | 10,200 | ||
| Fixed overhead | $188,200 | ||
| Variable overhead | $185,400 |
a.Calculate the fixed overhead production volume variance.
b.Calculate the variable overhead spending variance.
c.Calculate the variable overhead efficiency variance.
Calculate the over- or under-applied overhead.
Related questions
Jay Levitt Company budgeted the following cost standards for thecurrent year:
| Direct materials (2 kg of plastic at $6 per kilogram) | $12.00 | ||
| Direct labour (2 hours at $11 per hour) | 22.00 | ||
| Variable manufacturing overhead | 10.50 | ||
| Fixed manufacturing overhead | 6.35 | ||
| Total standard cost per unit | $50.85 |
Actual costs for producing 2,700 units were as follows:
| Direct materials used | 5,790 | kg | ||
| Direct materials purchased (6,650 kilograms) | $27,930 | |||
| Direct labour (6,900 hours) | $64,860 | |||
| Variable manufacturing costs | $32,900 | |||
| Fixed manufacturing costs | $17,500 |
a. Calculate the material price variance for materialspurchased.
b.Calculate the material efficiency variance.
c.Calculate the labour price variance.
d.Calculate the labour efficiency variance.
The following information was compiled by Wildhorse Company:
| Expected volume of production | 110,000 | units | ||
| Actual level of production | 105,000 | units | ||
| Budgeted fixed overhead | $220,000 | |||
| Actual fixed overhead | $228,150 | |||
| Variable overhead rate per direct-labour hour | $8 | |||
| Actual variable overhead | $406,000 | |||
| Standard direct-labour hours allowed per unit produced | 0.5 | hour | ||
| Standard direct-labour rate per hour | $8.05 | |||
| Actual direct-labour hours of input | 52,400 | hours | ||
| Actual direct-labour rate per hour | $8.10 |
Compute the following variances:
Direct-labour flexible-budget variance $______(Favourable/Unfavourable/neither)
