Shamrock Company's overhead rate was based on estimates of $186,000 for overhead costs and 18,600 direct labour hours. Shamrock's standards allow 2 hours of direct labour per unit produced. Production in May was 800 units, and actual overhead incurred in May was $19,000. The overhead budgeted for 1,600 standard direct labour hours is $15,850 ($4,650 fixed and $11,200 variable). (a) Calculate the total, budget, and volume variances for overhead. Total overhead variance Overhead budget variance Overhead volume variance $
Shamrock Company's overhead rate was based on estimates of $186,000 for overhead costs and 18,600 direct labour hours. Shamrock's standards allow 2 hours of direct labour per unit produced. Production in May was 800 units, and actual overhead incurred in May was $19,000. The overhead budgeted for 1,600 standard direct labour hours is $15,850 ($4,650 fixed and $11,200 variable). (a) Calculate the total, budget, and volume variances for overhead. Total overhead variance Overhead budget variance Overhead volume variance $
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...
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![Shamrock Company's overhead rate was based on estimates of $186,000 for overhead costs and 18,600 direct labour hours.
Shamrock's standards allow 2 hours of direct labour per unit produced. Production in May was 800 units, and actual overhead
incurred in May was $19.000. The overhead budgeted for 1,600 standard direct labour hours is $15,850 ($4,650 fixed and $11.200
variable).
(a) Calculate the total, budget, and volume variances for overhead.
Total overhead variance
Overhead budget variance
Overhead volume variance $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07ecaaa5-95ab-4179-8fe2-1d8e3b0b28ca%2F2e96981a-e626-4db3-9a32-4a16c18f9e65%2Fdms8j47_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Shamrock Company's overhead rate was based on estimates of $186,000 for overhead costs and 18,600 direct labour hours.
Shamrock's standards allow 2 hours of direct labour per unit produced. Production in May was 800 units, and actual overhead
incurred in May was $19.000. The overhead budgeted for 1,600 standard direct labour hours is $15,850 ($4,650 fixed and $11.200
variable).
(a) Calculate the total, budget, and volume variances for overhead.
Total overhead variance
Overhead budget variance
Overhead volume variance $
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