Ivanhoe Company's overhead rate was based on estimates of $199 200 for overhead costs and 19,920 direct labour hours. Ivanhoe's standards allow 2 hours of direct labour per unit produced. Production in May was V20 units, and actual overhead Incurred in May was $19,000. The overhead budgeted for 1,840 standard direct labrour hours is $17840 (54.900 foed and $12.280 variable). (a) Calculate the total, budget, and volume varlances for overhead. Total overhead variance Overhead budget varlance %24 Overhead volume varlance
Ivanhoe Company's overhead rate was based on estimates of $199 200 for overhead costs and 19,920 direct labour hours. Ivanhoe's standards allow 2 hours of direct labour per unit produced. Production in May was V20 units, and actual overhead Incurred in May was $19,000. The overhead budgeted for 1,840 standard direct labrour hours is $17840 (54.900 foed and $12.280 variable). (a) Calculate the total, budget, and volume varlances for overhead. Total overhead variance Overhead budget varlance %24 Overhead volume varlance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ivanhoe Cormpany's overhead rate was based on estimates of $199 200 for overhead costs and 19.920 direct labour hours
Ivanhoe's standards allow 2 hours of direct labour per unit produced. Production in May was 20 units, and actual overhead
incurred in May was $19,000. The overhead budgeted for 1.840 standard direct labour hours is $17260 (54.90 fred and $1220
variable).
(a) Calculate the total, budget, and volume variances for overhead.
Total overhead varlance
Overhead budget varlance
Overhead volume varlance
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