Explore BrainMass

Explore BrainMass

    Textile Express Company Labor and Overhead Variances

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    Calculating Labor and Overhead Variances

    At the start of 2012, Textile Express Company determined its standard labor cost to be 2.5 hours per unit at $33.90 per hour. The budget for variable overhead was $9 per unit, and budgeted fixed overhead was $15,000 for the year. Expected annual production was 5,000 units. During 2012, the actual cost of labor was $34.30 per hour. Textile Express produced 4,840 units requiring 11,800 direct labor hours. Actual overhead for the year was $48,820.

    Calculate labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance. (Round calculations to 2 decimal places, e.g. 25.21 and the final answers to 0 decimal places, e.g. 5,250. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

    Labor Rate Variance $ ______ favorable or unfavorable
    Labor Efficiency Variance $______ unfavorable or favorable
    Controllable Overhead Variance $_______ favorable or unfavorable
    Overhead Volume Variance $______ unfavorable or favorable

    © BrainMass Inc. brainmass.com March 5, 2021, 12:08 am ad1c9bdddf

    Solution Summary

    A diagram to show you how these amounts are computed is created in Excel for you with the computations shown in detail. Instructional comments are added in Excel.