Refer to the information in Problem 23-4B.
Required
Compute these variances:
(a) Variable overhead spending and efficiency,
(b) Fixed overhead spending and volume, and
(c) Overhead controllable.
Problem 23-4B
Kryll Company set the following standard costs per unit for its single product.
Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company’s capacity of 60,000 units per quarter. The following additional information is available.
During the current quarter, the company operated at 70% of capacity and produced 42,000 units; direct labor hours worked were 250,000. Units produced were assigned the following standard costs.
Actual costs incurred during the current quarter follow.
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