Calculate Fixed And Variable Overhead Expenses

Question

The following data are the actual results for Marvelous Marshmallow Company for October.

Actual output 10000 cases

Actual variable overhead $400000

Actual fixed overhead $149000

Actual machine time 43500 machine hours

Standard cost and budget information for Marvelous Marshmallow Company follows:

Standard variable-overhead rate $ 9.00 per machine hour

Standard quantity of machine hours 4 hours per case of marshmallows

Budgeted fixed overhead $144000 per month

Budgeted output 12000 cases per month

Required:

Use the variance formulas to compute the following variances. Indicate whether each variance is
favorable or unfavorable. (Select "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Input all amounts as positive values.

Variable-overhead spending variance $ _______

Variable-overhead efficiency variance $ _______

Fixed-overhead budget variance $ ________

Fixed-overhead volume variance $ ________

Summary

The question belongs to Accounting and it discusses about calculation of variable overhead spending variance, variable overhead efficiency variance, fixed overhead budget variance, fixed overhead volume variance.

Total Word Count 35