Task:
Megan Corp.
The following data are available for the Megan Corp. finishing department for the current year. The department makes a single product that requires three hours of labor per unit of finished product. Budgeted volume for the year was 30,000 direct labor hours.
Overhead efficiency variance $4,000 U
Budgeted fixed overhead $900,000
Number of units produced 11,000 units
Standard direct labor wage rate $15 per direct labor hour
Total overabsorbed overhead variance $92,000 F
Direct labor efficiency variance $15,000 U
Required:
a. Calculate
(i) Actual overhead incurred.
(ii) Overhead spending variance.
(iii) Actual number of direct labor hours.
(iv) Budgeted variable overhead rate per direct labor hour.
(v) Overhead rate per direct labor hour.
(vi) Overhead volume variance.
(vii) Actual direct labor wage rate.
b. Write a one-paragraph report summarizing the results of operations