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# Textile Express Company Labor and Overhead Variances

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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