1. Walker Corporation is the distributor of several products. They used a predetermined variable overhead rate based on direct labor hours. In the most recent month, 90,000 items were shipped to customers using 3,500 direct labor hours. The company incurred a total of $12,600 in variable overhead costs. According to the company's overhead standards, 0.04 direct labor hours are required to fulfil an order for one item and the variable overhead rate is $3.50 per direct labor hours.
a. What is the variable overhead spending variance? Show calculations
b. What is the variable overhead efficiency variance? Show calculations
2. For the third quarter of the year, the following data was reported: Inspection time 1.4 days Process time 4.5 days Wait time 12.0 days (the time between the customer order and the beginning of production) Queue time 3.9 days Move time 0.8 days
a. What is the throughput time? Show calculations
b. What is the manufacturing cycle efficiency for the quarter? Show calculations
c. What is the delivery cycle time? Show calculations