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What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total overhead variance $

What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total overhead variance $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Materials Per unit 2 lb. Direct labor Item Labor Cost 80.00€ per lb. Per unit Cost 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $3.83 The January figures for purchasing, production, and labor are: The company purchased 230,100 pounds of raw materials in January at a cost of 784 a pound. Production used 230,100 pounds of raw materials to make 116,000 units in January, Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $41,342 variable and $75,000 fixed.
Transcribed Image Text:Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Materials Per unit 2 lb. Direct labor Item Labor Cost 80.00€ per lb. Per unit Cost 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $3.83 The January figures for purchasing, production, and labor are: The company purchased 230,100 pounds of raw materials in January at a cost of 784 a pound. Production used 230,100 pounds of raw materials to make 116,000 units in January, Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $41,342 variable and $75,000 fixed.
What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total overhead variance $
Transcribed Image Text:What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total overhead variance $
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