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Hi,
The following details relate to product T, which has selling price of $ 44.00:
$ / unit
Direct materials : 15.00
Direct labour ( 3 hrs.) : 12.00
Variable overhead : 6.00
Fixed overhead : 4.00Total : 37.00
During April 20X6, the actual production of T was 800 units, which was 100 units fewer than budgeted. The budget shows an annual production target of 10800, with fixed costs accruing at a constant rate throughout the year. Actual overhead expenditure totalled $8500 for April 20X6.
Overheads are absorbed on the basis of units produced.
What were the overhead expenditure & volume variances for April 20X6?
I need help on calculating this question. Can anyone pls help me?
Hi,
I have 2 other questions regarding to this chapter.
1. Michel has bought the following results. 10080 hrs actually worked and paid costing $ 8770.
If the rate variance is $ 706 (A), the efficiency variance $ 256 (F), and 5000 units were produced, what is the standard production time per unit?A. 1.95 hrs
B. 1.96 hrs
C. 2.07 hrs
D. 2.08 hrsThe correct answer to this question was D. But I don’t know why i keep getting answer C. Can someone pls help me out with this problem??
2. A company operates a standard marginal costing system. Last month actual fixed OH Expenditure was 2% below budget and fixed OH expenditure variance was $ 1250. What was the actual fixed overhead expenditure for last month?
I would really appreciate it if someone can explain the calculation that was used to answer this question pls.
Thx in advance.
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