The data below relate to Super Fit Ltd, a manufacture of exercise equipment, for the month of August:

Standard variable overhead rate ………………………… $18 per machine hour

Standard quantity of machine hours ……………………… 2 hours per unit of output

Budgeted fixed overhead ……………………………………………. $180 000

Budgeted output …………………………………………………. 15 000 units

Actual results for August are as follows:

Actual output ………………………………………………… 13 500 units

Actual variable overhead ……………………………………….. $504 900

Actual fixed overhead …………………………………………… $183 000

Actual machine time ………………………………. 29 700 machine hours

Required:

Calculate the following variances, indicating whether each variance is favourable or unfavourable.

1. Variable overhead spending variance.

2. Variable overhead efficiency variance.

3. Fixed overhead budget variance.

4. Fixed overhead volume variance?



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