Subject: acounting The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Rawmaterials inventories, therefore, can be ignored.Compute the overhead controllable variance and the overhead volume variance.Overhead controllable varianceOverhead volume varianceeTextbook and Media$$Assistance Used Vaughn Corporation manufactures a single product. The standard cost per unit of product is shown below.Direct materials-3 pound plastic at $6 per poundDirect labor-0.5 hours at $11.00 per hourVariable manufacturing overheadFixed manufacturing overheadTotal standard cost per unitDirect materials (14,000 pounds)Direct labor (2,130 hours)Variable overheadFixed overheadTotal manufacturing costs$86,80023,856The predetermined manufacturing overhead rate is $14 per direct labor hour ($7.00+0.5). It was computed from a mastermanufacturing overhead budget based on normal production of 2.550 direct labor hours (5.100 units) for the month. The masterbudget showed total variable overhead costs of $16,575 ($6.50 per hour) and total fixed overhead costs of $19,125 ($7.50 per hour).Actual costs for October in producing 4.600 units were as follows.24,15010,350$18.00$145,1565.503.253.75$80.50The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Rawmaterials inventories, therefore, can be ignored.Compute the overhead controllable variance and the overhead volume variance.

Name: Subject: acounting The purchasing department buys the quantities of ra
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Subject: acounting The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Rawmaterials inventories, therefore, can be ignored.Compute the overhead controllable variance and the overhead v