Explore BrainMass

# Calculating overhead variances for SooTech Company

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!

Exercise 8E-6

E8-6 The following information was taken from the annual manufacturing overhead
cost budget of SooTech Company.

Normal production level in hours 16,500
Normal production level in units 4,125

During the year, 4,000 units were produced, 16,100 hours were worked, and the
on the basis of direct labor hours.
Instructions
a. Compute the total, fixed, and variable predetermined manufacturing overhead
rates.
b. Compute the total, controllable, and volume overhead variances.

Excel Format:

#6

(a)Item Amount Hours Rate

= \$2,800 U.
*(\$16,500 Ã Â· 4,125) X 4,000 units

+ \$19,800] = \$2,200 U.

#### Solution Preview

(a) Items hours and rate is computed below

Item Amount Hours ...

#### Solution Summary

The solution explains how to calculate the overhead variances for SooTech Company

\$2.49