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Jessel Corporation - Variable Overhead Performance

Variable Overhead Performance Report with Just a Spending Variance [LO3]

Jessel Corporation bases its variable overhead performance report on the actual direct labor-hours of the period. Data concerning the most recent year that ended on December 31 are as follows:

Budgeted direct labor-hours 42,000
Actual direct labor-hours 44,000
Standard direct labor-hours allowed 45,000
Cost formula (per direct labor-hour):
Indirect labor $ 0.90
Supplies $ 0.15
Electricity $ 0.05
Actual costs incurred:
Indirect labor $ 42,000
Supplies $ 6,900
Electricity $ 1,800
________________________________________

Required:
Compute the variable overhead spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)

Overhead Costs Spending Variance
Indirect labor $

Supplies

Electricity

Total variable over head cost $

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Variable Overhead Performance Report with Just a Spending Variance [LO3]

Jessel Corporation bases its variable overhead performance report on the actual direct labor-hours of the period. Data concerning the most recent year that ended on December 31 are as follows:

Budgeted direct labor-hours 42,000
Actual ...

Solution Summary

This solution is comprised of a detailed explanation to compute the variable overhead spending variances. It is included in Word format.

$2.19