Jasper Company makes a single product. Its standard costs per unit are as follows: Direct materials, 2 pounds @$4.50 $9 Direct labour, 3 hours @$5 $15 Overhead $10 per direct labour-hour (DLH)* $30 Standard cost per unit $54 *Based on normal capacity of 50,000 units. $7 per DLH is variable. At the beginning of 2019, there were no inventories. During 2019, the following events occurred: 1. Direct labour was $790,750 for 151,000 DLH worked. 2. Variable overhead incurred was $1,046,000. 3. Fixed overhead was $490,000. 4. Jasper produced 48,000 units. There were no unfinished goods or work in process (WIP) at the end of 2016. Required: 1. What was the total overhead spending variance (variable and fixed) for 2019? 2. What was the fixed overhead volume variance for 2019?
Jasper Company makes a single product. Its
Direct materials, 2 pounds @$4.50 $9
Direct labour, 3 hours @$5 $15
Standard cost per unit $54
*Based on normal capacity of 50,000 units. $7 per DLH is variable.
At the beginning of 2019, there were no inventories. During 2019, the following events occurred:
1. Direct labour was $790,750 for 151,000 DLH worked.
2. Variable overhead incurred was $1,046,000.
3. Fixed overhead was $490,000.
4. Jasper produced 48,000 units. There were no unfinished goods or work in process (WIP) at the end of 2016.
Required:
1. What was the total overhead spending variance (variable and fixed) for 2019?
2. What was the fixed overhead volume variance for 2019?
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