800 per standard labour hour budgetedfixed

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Unformatted text preview:   $4,200U $4,500U Neveravariance FixedOverhead $3,000U Neveravariance $600U    8 ­‑25(40−50min.)Totaloverhead,three ­‑varianceanalysis.  1.       * This problem has two major purposes: (a) to give experience with data allocatedonatotaloverheadbasisinsteadofonseparatevariableandfixed bases and (b) to reinforce distinctions between actual hours of input, budgeted (standard) hours allowed for actual output, and denominator level.   An analysis of direct manufacturing labour will provide the data for actual hours of input and standard hours allowed. One approach is to plug the known figures (designated by asterisks) into the analytical framework and solve for the unknowns. The direct manufacturing labour efficiencyvariancecanbecomputedbysubtracting$3,856 from$5,776.The completepictureisasfollows:   FlexibleBudget:   BudgetedInput   Allowedfor ActualCosts Actu...
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