Pointe Claire Company applies overhead based on direct labourhours. Two direct labour hours are required for each unit ofproduct. Planned production for the period was set at 8,700 units.Manufacturing overhead is budgeted at $130,500 for the period (20%of this cost is fixed). The 17,350 hours worked during the periodresulted in the production of 8,130 units. The variablemanufacturing overhead cost incurred was $108,500 and the fixedmanufacturing overhead cost was $28,900.
a.Calculate the variable overhead spending variance for theperiod.
b.Calculate the variable overhead efficiency (quantity) variancefor the period.
c.Calculate the fixed overhead budget (spending) variance forthe period.
d. Calculate the fixed overhead volume variance for theperiod.
Pointe Claire Company applies overhead based on direct labourhours. Two direct labour hours are required for each unit ofproduct. Planned production for the period was set at 8,700 units.Manufacturing overhead is budgeted at $130,500 for the period (20%of this cost is fixed). The 17,350 hours worked during the periodresulted in the production of 8,130 units. The variablemanufacturing overhead cost incurred was $108,500 and the fixedmanufacturing overhead cost was $28,900.
a.Calculate the variable overhead spending variance for theperiod.
b.Calculate the variable overhead efficiency (quantity) variancefor the period.
c.Calculate the fixed overhead budget (spending) variance forthe period.
d. Calculate the fixed overhead volume variance for theperiod.
Related questions
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.
