The following data are the actual results for Marvelous Marshmallow Company for October.
Actual output 10000 cases
Actual variable overhead $400000
Actual fixed overhead $149000
Actual machine time 43500 machine hours
Standard cost and budget information for Marvelous Marshmallow Company follows:
Standard variable-overhead rate $ 9.00 per machine hour
Standard quantity of machine hours 4 hours per case of marshmallows
Budgeted fixed overhead $144000 per month
Budgeted output 12000 cases per month
Use the variance formulas to compute the following variances. Indicate whether each variance is
favorable or unfavorable. (Select "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Input all amounts as positive values.
Variable-overhead spending variance $ _______
Variable-overhead efficiency variance $ _______
Fixed-overhead budget variance $ ________
Fixed-overhead volume variance $ ________
The question belongs to Accounting and it discusses about calculation of variable overhead spending variance, variable overhead efficiency variance, fixed overhead budget variance, fixed overhead volume variance.
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