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

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The Answer of 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.