Answer:
Explanation:
1).
Fixed overhead rate = Budgeted fixed overhead / Budgeted direct labor hours = $585,280 / 496000 = $1.18 per hour
Standard hour per unit = 496000 / 124000 = 4 hours per unit
Standard hours for actual production = 119300 * 4 = 477200 hours
Budgeted fixed overhead = $585,280
Actual fixed overhead = $555,750
Fixed overhead applied = SH * Standard rate of fixed overhead = 477200 * $1.18 = $563,096
Fixed overhead spending variance = Budgeted fixed overhead - Actual fixed overhead
= $585,280 - $555,750 = $29,530 F
Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead
= $563,096 - $585,280 = $22,184 U
2).
Standard rate of variable overhead = ($813,440 - $585,280) / 496000 = $0.46 per hour
Actual rate of variable overhead = $260,700 / 494000 = $0.5277327935 per hour
Variable overhead spending variance = (SR - AR) * AH = ($0.46 - $0.5277327935) * 494000 = $33,460 U
Variable overhead efficiency variance = (SH - AH) * SR = (477200 - 494000) * $0.46 = $7,728 U
