Overhead Variances

Overhead Variances - Variable Costs Indirect Materials...

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Overhead Variances Variances may occur for both the variable and fixed cost components of manufacturing overhead.  Before looking at the variances, a summary of the overhead information for Bases, Inc., might be  helpful. The original plan was for 12,500 units per month, and the actual production for October was  13,300 units.  Bases, Inc. Manufacturing Overhead For the Month of October 20X1
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Unformatted text preview: Variable Costs Indirect Materials $0.02 $390 $130 $133 Indirect Labor .40 2,795 2,600 2,660 Maintenance .30 2,145 1,950 1,995 Total Variable Costs .72 5,330 4,680 4,788 Fixed Costs Depreciation, machinery 600 525 525 Building Rent 1,000 1,000 1,000 Supervisor Salary 2,200 2,100 2,100 Total Fixed Costs .58 3,800 3,625 ( 2 ) 3,625 ( 2 ) Total Overhead Costs $1.30 $9,130 $8,305 $8,413 $8,645 ( 1 )...
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Overhead Variances - Variable Costs Indirect Materials...

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