Static budget variable overhead $8,000 Static budget fixed overhead $3,200 Static budget direct labor hours 1,600 hours Static budget number of units 4,000 units   Jackson allocates manufacturing overhead to production based on standard direct labor hours. Last​ month, Jackson reported the following actual​ results: actual variable​ overhead, $10,700​; actual fixed​ overhead, $2,810​; actual production of 7,400 units at 0.20 direct labor hours per unit. The standard direct labor time is 0.4 direct labor hours per unit ​(1,600 static direct labor hours​ / 4,000 static​ units). Compute the overhead variances for the​ month: variable overhead cost​ variance, variable overhead efficiency​ variance, fixed overhead cost​ variance, and fixed overhead volume variance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Static budget variable overhead
$8,000
Static budget fixed overhead
$3,200
Static budget direct labor hours
1,600 hours
Static budget number of units
4,000 units
 
Jackson
allocates manufacturing overhead to production based on standard direct labor hours. Last​ month,
Jackson
reported the following actual​ results: actual variable​ overhead,
$10,700​;
actual fixed​ overhead,
$2,810​;
actual production of
7,400
units at
0.20
direct labor hours per unit. The standard direct labor time is
0.4
direct labor hours per unit
​(1,600
static direct labor hours​ /
4,000
static​ units).
Compute the overhead variances for the​ month: variable overhead cost​ variance, variable overhead efficiency​ variance, fixed overhead cost​ variance, and fixed overhead volume variance.
   
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education