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McGrath Company Manufactured 1000 Units During April with a Total

Question 136

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McGrath Company manufactured 1000 units during April with a total overhead budget of $12 400.However,while manufacturing the 1000 units,the microcomputer that contained the month's cost information broke down.With the computer out of action,the accountant has been unable to complete the variance analysis report.The information missing from the report is lettered in the following set of data:
Variable overhead:
Standard cost per unit: 0.4 labour hour at $4 per hour
Actual costs: $2100 for 376 hours
a:Flexible budget
b:Total flexible-budget variance
c:Variable overhead spending variance
d:Variable overhead efficiency variance
Fixed overhead:
e:Budgeted costs
f:Actual costs
Flexible-budget variance: $500 favourable
Required:
Compute the missing elements in the report represented by the lettered items.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Correct Answer:

verifed

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a.1000 × 0.40 × $4 = $1600
b.$2100 - $16...

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