Midwest Manufacturing uses a standard cost system. The following information is available: . . Actual variable factory overhead: $52,000 Standard variable overhead rate: $4 per direct labor hour Actual direct labor hours worked: 12,500 Standard hours allowed for actual production: 13,000 Calculate the variable factory overhead controllable variance.

Midwest Manufacturing uses a standard cost system. The following information is available: . . Actual variable factory overhead: $52,000 Standard variable overhead rate: $4 per direct labor hour Actual direct labor hours worked: 12,500 Standard hours allowed for actual production: 13,000 Calculate the variable factory overhead controllable variance.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 9DQ: At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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