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(Solved) (Latest ver. Aug 2020) - Overhead variances

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The following information is for the third quarter of this year:

Planned Actual
Production 92,000 units 87,000 units
Direct labor hours 506,800 DL hrs 380,000 DL hrs
Fixed Manufacturing Overhead $205,000 $182,400
Variable manufacturing overhead $910,000 $841,500
Standard direct labor hour per unit 5.5

Required:
Calculate the following three overhead variances:
a) Overhead volume variance
b) Overhead efficiency variance
c) Overhead spending variance

 







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This question was answered on: Sep 16, 2020

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