Problem: Variances - Boutin Glass Works
Boutin Glass Works' production budget for the year ended November 30, 20x4, in department C was based on 200,000 units. Each unit requires two standard hours of labour for completion. Total overheadwas budgeted at $900,000 for the year, and the fixed overhead rate was estimated to be $3 per unit. Bothfixed and variable overhead are applied to the product on the basis of direct labour hours. The actual datafor the year ended November 30, 20x4, are as follows:Actual production in units 198,000Actual direct labour hours 440,000Actual variable overhead $352,000Actual fixed overhead $575,000
Required:
a. What were the standard hours allowed for actual production for the year ended November 30,20x4?
b. What was the VOH efficiency variance for the year?
c. What was the VOH spending variance for the year?
d. What was the FOH spending variance for the year?
e. What was the FOH applied to Boutin's production for the year?
f. What was the FOH production volume variance for the year?