Woods, Inc. budgeted the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units: The standard cost per unit when operating at this same 80% capacity level is: The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were: Calculate the following variances and indicate whether each is favorable or unfavorable.

Question

Woods, Inc. budgeted the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units:  The standard cost per unit when operating at this same 80% capacity level is:  The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were:  Calculate the following variances and indicate whether each is favorable or unfavorable.