Question: The following information was taken from the annual manufacturing overhead cost budget of Whispering Winds Company: Variable manufacturing overhead costs $35,520 Fixed manufacturing overhead costs $15,540 Normal production level in labour hours 14,800 Normal production level in units 3,700 Standard labour hours per unit During the year, 3,600 units were produced, 14,700 hours were worked, and the actual manufacturing overhead was $51,380. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. Calculate the total, budget, and volume overhead variances. Total overhead variance $ Budget overhead variance -1,700 Unfavourable -320 Unfavourable Volume overhead variance 1,380 Unfavourable
Question: The following information was taken from the annual manufacturing overhead cost budget of Whispering Winds Company: Variable manufacturing overhead costs $35,520 Fixed manufacturing overhead costs $15,540 Normal production level in labour hours 14,800 Normal production level in units 3,700 Standard labour hours per unit During the year, 3,600 units were produced, 14,700 hours were worked, and the actual manufacturing overhead was $51,380. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. Calculate the total, budget, and volume overhead variances. Total overhead variance $ Budget overhead variance -1,700 Unfavourable -320 Unfavourable Volume overhead variance 1,380 Unfavourable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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