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Bike Pedals Manufactures Bicycle Seats

Question 145

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Bike Pedals manufactures bicycle seats.The company budgeted to manufacture 25,000 seats in April with 0.05 standard machine hours per seat.The total variable factory overhead was budgeted at $30,000 for the operation.During April the company manufactured 30,000 seats using 1,600 machine hours.It incurred $34,000 of variable factory overhead (VOH)costs.
Required: Determine each of the following variances.Show calculations.
(a)Variable overhead spending variance.
(b)Variable overhead efficiency variance.
(c)Variable overhead flexible-budget variance.

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