Sam’s Furniture uses variance analysis to evaluate manufactu…
Sam’s Furniture uses variance analysis to evaluate manufacturing overhead in its’ factory. The information for the June overhead expenditures is as follows: Budgeted output units 22,000 chairs Budgeted fixed manufacturing overhead $26,400 Budgeted variable manufacturing overhead $2.50 per direct labour hour Budgeted direct manufacturing labour hours 0.3 hour per chair Fixed manufacturing costs incurred $25,300 Direct manufacturing labour hours used 7,600 hours Variable manufacturing costs incurred $17,100 Actual units manufactured 19,000 chairs Required: A. Calculate the variable manufacturing overhead rate and efficiency variances B. Calculate the fixed manufacturing overhead rate and production-volume variances.
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