Question - ABC Manufacturing provides the standard cost of making a single product for June:
Factory Overhead Fixed 4 hours @ $1.25 per hour $5.00
Variable 4 hours @ $6.25 per hour $25.00
The factory overhead rate was based on a budgeted production of 16,000 units for June, and budgeted fixed factory overhead of $80,000.
Actual transactions and the results for June were:
Direct Labor incurred: 63,000hrs
Number of units produced: 15,800
Factory Overhead incurred:
Fixed 78,247
Variable 390,320
Required: Complete the Worksheet and answer the following questions:
(a) What was the Overhead Spending Variance for June?
(b) What was the Overhead Volume Variance for June?
(c) What was the Overhead Flexible Budget Variance for June?