Calgary Paper Company produces paper for photocopiers. The company has developed standard over-head rates based on a monthly capacity of 180,000 direct-labor hours as follows" "Standard costs per unit (one box of paper): Variable overhead (2 direct-labor hours @ $3 per hour) .......................................$ 6 Fixed overhead (2 direct-labor hours @ $5 per hour) ........................................... 10 Total ......................................................................................................................$ 16" "During April, 90,000 units were scheduled for production; however, only 80,000 units were actually produced. The following data relate to April.1.Actual direct-labor cost incurred was $1,567,500 for 165,000 actual hours of work.2.Actual overhead incurred totaled $1,371,500, of which $511,500 was variable and $860,000 was fixed. Required: Prepare two exhibits similar to Exhibits 11–6 and 11–8 in the chapter, which show the following vari-ances. State whether each variance is favorable or unfavorable, where appropriate. 1.Variable-overhead spending variance. 2.Variable-overhead efficiency variance. 3.Fixed-overhead budget variance. 4.Fixed-overhead volume variance"
"Calgary Paper Company produces paper for photocopiers. The company has developed standard over-head rates based on a monthly capacity of 180,000 direct-labor hours as follows"
"
Variable
Fixed overhead (2 direct-labor hours @ $5 per hour) ........................................... 10
Total ......................................................................................................................$ 16"
"During April, 90,000 units were scheduled for production; however, only 80,000 units were actually produced. The following data relate to April.1.Actual direct-labor cost incurred was $1,567,500 for 165,000 actual hours of work.2.Actual overhead incurred totaled $1,371,500, of which $511,500 was variable and $860,000 was fixed.
Required:
Prepare two exhibits similar to Exhibits 11–6 and 11–8 in the chapter, which show the following vari-ances. State whether each variance is favorable or unfavorable, where appropriate.
1.Variable-overhead spending variance.
2.Variable-overhead efficiency variance.
3.Fixed-overhead
4.Fixed-overhead volume variance"
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