Sharp Company manufactures jeans.In June,Sharp made 1200 pairs of jeans,but had budgeted production at 1400 pairs of jeans.The allocation base for overhead costs is direct labor hours.The following additional data is available for the month:

Calculate the following variances:
a.Variable overhead cost variance
b.Variable overhead efficiency variance
c.Total variable overhead variance
d.Fixed overhead cost variance
e.Fixed overhead volume variance
f.Total fixed overhead variance

Question

Sharp Company manufactures jeans.In June,Sharp made 1200 pairs of jeans,but had budgeted production at 1400 pairs of jeans.The allocation base for overhead costs is direct labor hours.The following additional data is available for the month:
  
Calculate the following variances:
a.Variable overhead cost variance
b.Variable overhead efficiency variance
c.Total variable overhead variance
d.Fixed overhead cost variance
e.Fixed overhead volume variance
f.Total fixed overhead variance

Quizplus · Accepted Answer

The Answer of Sharp Company manufactures jeans.In June,Sharp made 1200 pairs of jeans,but had budgeted production at 1400 pairs of jeans.The allocation base for overhead costs is direct labor hours.The following additional data is available for the month:
  
Calculate the following variances:
a.Variable overhead cost variance
b.Variable overhead efficiency variance
c.Total variable overhead variance
d.Fixed overhead cost variance
e.Fixed overhead volume variance
f.Total fixed overhead variance

Sharp Company Manufactures Jeans