The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (6 hours @ $20) $120 Variable overhead (6 hours @ $2) $12 Fixed overhead (6 hours @ $4) $24 The master budget level of production is 60,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period includes the following. Actual variable overhead incurred $110,000 Actual fixed overhead incurred $253,000 Direct labor efficiency variance $140,000 U Variable overhead price variance $4,000 F Required: a. What was the variable overhead efficiency variance? b. What was the fixed overhead price variance? c. What was the fixed overhead production volume variance?
The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (6 hours @ $20) $120 Variable overhead (6 hours @ $2) $12 Fixed overhead (6 hours @ $4) $24 The master budget level of production is 60,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period includes the following. Actual variable overhead incurred $110,000 Actual fixed overhead incurred $253,000 Direct labor efficiency variance $140,000 U Variable overhead price variance $4,000 F Required: a. What was the variable overhead efficiency variance? b. What was the fixed overhead price variance? c. What was the fixed overhead production volume variance?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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