Question 1: Dagle Corporation has provided the following data for a recent month:
Budgeted production 4,700 motors
Actual production 5,100 motors
Standard machine-hours per motor 6 machine-hours
Budgeted machine-hours (6 × 4,700) 28,200 machine-hours
Standard machine-hours allowed for the actual output (6 × 5,100) 30,600 machine-hours
Actual machine-hours 24,690 machine-hours
Budgeted variable overhead cost per machine-hour:
Indirect labor $5.6 per machine-hour
Power $2.2 per machine-hour
Actual total variable overhead costs:
Indirect labor $151,406
Power $56,300
The variable overhead spending variance for power is:
- $3,697 F
- $3,697 U
- $28,200 U
- $1,982 U