Predetermined variable overhead rate 03 per dlh

Predetermined Variable overhead rate 0.3 per DLH
Budgeted direct manufacturing labor hours 56700/126000=0.45 per unit
Actual data for January are as follows:
Actual
Units Produced 115,000
Direct Labour Hours 55,000
Variable Overhead
Costs
$ 15,250
Fixed Overhead Costs $115,200
Required:
2. What is the efficiency variance for variable overhead?
QUESTION B: (Continued)
Answer
3. What is the Rate variance for fixed overhead? $115200 - $113400 =1800 U
4. What is the Production volume variance for
fixed overhead?
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ACCT 3420 – Group assignment – Week 5
5. Using your answers to questions 3 and 4 above:
a. explain the rate and production volume variances (descriptive analytics)
b. explain why these variances may have occurred (diagnostic analytics)
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