Explore BrainMass

Explore BrainMass

    Overhead Variances

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. Crystal Glassware Company has the following standards and flexible budget data.
    Standard variable overhead rate................. $6.00 per direct labor hour
    Standard quantity of direct labor................2 hours per unit of output
    Budgeted fixed overhead........................$100,000
    Budgeted output...................................25,000 units

    Actual results for April are as follows:
    Actual output.....................................20,000 units
    Actual variable overhead.......................$320,000
    Actual fixed overhead..........................$97,000
    Actual direct labor..............................50,000 hours

    Use the variance formulas to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.
    1. Variable overhead spending variance.
    2. Variable overhead efficiency variance.
    3. Fixed overhead budget variance.
    4. Fixed overhead volume variance.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:24 am ad1c9bdddf
    https://brainmass.com/business/accounting/overhead-variances-455866

    Attachments

    Solution Summary

    The solution computes variable overhead spending variance, Variable overhead efficiency variance, Fixed overhead budget variance, Fixed overhead volume variance.

    $2.19

    ADVERTISEMENT