Explore BrainMass

Explore BrainMass

    Weaver Company: spending & efficiency variance for variable

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

    Part 8: Weaver Company.

    Weaver Company has developed standard overhead costs based on a capacity of 180,000 machine hours as follows:

    Standard costs per unit:
    Variable portion 2 hours @ $3 = $ 6
    Fixed portion 2 hours @ $5 = 10
    $16

    During April, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to April:

    Actual machine hours used were 165,000.
    Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).
    All inventories are carried at standard cost.

    a. The variable overhead spending variance for April was

    b. The variable overhead efficiency variance for April was

    c. The fixed overhead spending variance for April was

    d. The fixed overhead volume variance for April was

    © BrainMass Inc. brainmass.com June 3, 2020, 10:25 pm ad1c9bdddf
    https://brainmass.com/business/accounting/weaver-company-spending-efficiency-variance-for-variable-230449

    Solution Preview

    Part 8: Weaver Company.

    Weaver Company has developed standard overhead costs based on a capacity of 180,000 machine hours as follows:

    Standard costs per unit:
    Variable portion 2 hours @ $3 = $ 6
    Fixed portion 2 hours @ $5 = 10
    $16

    During April, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the variable overhead spending variance for April.

    $2.19

    ADVERTISEMENT