My first Magazine ACC 206 All Assignments | Page 40

· Estimated fixed overhead: $400,000
· Estimated direct labor hours: 40,000
It is now 12 months later. Actual total overhead incurred in the
manufacture of 7,900 units amounted to $895,100. Actual labor hours
totaled 39,800. Assuming a direct labor standard of five hours per
finished unit, calculate the following:
a. Variable overhead efficiency variance
b. Fixed overhead volume variance
c. Overhead spending variance
Chapter 7 Problem 1
1. P26-A1 Basic flexible budgeting (L.O. 2)
Centron, Inc., has the following budgeted production costs:
Direct materials
$0.40 per unit
Direct labor
1.80 per unit
Variable factory overhead
2.20 per unit
Fixed factory overhead