- Problems Calgary Paper Company Packages Paper For Photocopiers The Company Has Developed Standard Over Head Rates Base 1 (13.83 KiB) Viewed 26 times
- Problems Calgary Paper Company Packages Paper For Photocopiers The Company Has Developed Standard Over Head Rates Base 2 (52.88 KiB) Viewed 26 times
Part III Planning, Control, and Cost Management Systems Standard costs per unit (one box of paper): Variable overhead (2 hours @ $3) Fixed overhead (2 hours @ $5) Total $6 10 $16 During April, 90,000 units were scheduled for production; however, only 80,000 units were actually pro- duced. The following data relate to April. 1. Actual direct-labor cost incurred was $1,567,500 for 165,000 actual hours of work. 2. Actual overhead incurred totaled $1,371,500, of which $511,500 was variable and $860,000 was fixed. Required: Prepare two exhibits similar to Exhibits 11-6 and 11-8 in the chapter, which show the fol- lowing variances. State whether each variance is favorable or unfavorable, where appropriate. 1. Variable-overhead spending variance. 2. Variable-overhead efficiency variance. 3. Fixed-overhead budget variance. 4. Fixed-overhead volume variance. (CMA, adapted)