During the period Richeleau produced 1,000 units of product. The flexible budget for standard costs is: Direct materials $43,000
Direct labour 67,000
Variable overhead 30,000
Fixed overhead 25,000
Variances for the period are:
Direct materials price $ 400 U
Direct materials efficiency 500 F
Direct labour price 600 F
Direct labour efficiency 200 U
Variable overhead spending 300 F
Variable overhead efficiency 100 F
Fixed overhead spending 500 F
Fixed overhead production volume 1,000 U
The variable overhead allocated was:
A)$29,600
B)$30,000
C)$29,900
D)$30,400

Question

Quizplus · Accepted Answer

The flexible budget for variable overhead is $30,000. Since there is a variance for variable overhead spending, the actual amount spent may have been higher or lower than the $30,000 budget. However, the question does not provide enough information to accurately determine the actual amount spent. Therefore, the variable overhead allocated amount cannot be calculated based on the given information. However, we do know that the flexible budget for variable overhead is $30,000, so the closest answer option to that is B, $30,000.

During the Period Richeleau Produced 1,000 Units of Product