Erie Co. uses machine hours to apply standard overhead cost to production. The following data pertain to October: Required: Compute the following variances using machine hours as the activity variable used to assign standard overhead costs to production. Show calculations.
1. Variable overhead spending variance
2. Variable overhead efficiency variance
3. Fixed overhead spending variance
4. Fixed overhead production-volume variance

Question

Erie Co. uses machine hours to apply standard overhead cost to production. The following data pertain to October:  Required: Compute the following variances using machine hours as the activity variable used to assign standard overhead costs to production. Show calculations.
1. Variable overhead spending variance
2. Variable overhead efficiency variance
3. Fixed overhead spending variance
4. Fixed overhead production-volume variance

Quizplus · Accepted Answer

The Answer of Erie Co. uses machine hours to apply standard overhead cost to production. The following data pertain to October:  Required: Compute the following variances using machine hours as the activity variable used to assign standard overhead costs to production. Show calculations.
1. Variable overhead spending variance
2. Variable overhead efficiency variance
3. Fixed overhead spending variance
4. Fixed overhead production-volume variance

Erie Co Uses Machine Hours to Apply Standard Overhead Cost to to Production