Organet Stamping Company manufactures a variety of products made of plastic and aluminum components. During winter months, substantially all production capacity is devoted to lawn sprinklers for the following spring and summer seasons. Other products are manufactures during the remainder of the year. Because a variety of products are manufactured throughout the year, factory volume is measured using prodction labor-hours rather than units of production.
Based on the attached data, we are required to compute the following for February:
1. Total variance from standard cost of the costs charged to production
2. Spending or budget variance for the fixed protion of the overhead costs
3. The labor efficience variance
4. The labor rate variance
5. Total variable cost variance
6. Variable overhead spending, efficiency, and flexible budget variances
7. Factory overhead production volume variance
8. The materials variances. Also comment on the effects of using materials of different grades.
Please see the excel sheet attached. It contains all the ...
Excel file contains all the details, steps, formulas, and explanation. The data section is separate from calculations section. In calculations cell references are used so that you can see how the figure is calculated.