Handy Company production budget for the year ended November 30, 2022 in Department C was based on 200,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $900,000 for the year and the fixed overhead rate was estimated to be $3 per unit. Both fixed and variable overhead are applied to the product on the basis of direct labor hours. The actual data for the year ended November 30, 2022 are: Actual production in units = 198,000 Actual direct labor hours = 440,000 Actual variable overhead = $352,000 Actual fixed overhead = $575,000 a. What were the standard hours allowed for actual production for the year ended November 30, 2022? 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 Mooven's production for the year? f. What was the FOH production volume variance for the year?
Handy Company production budget for the year ended November 30, 2022 in Department C
was based on 200,000 units. Each unit requires two standard hours of labor for completion.
Total overhead was budgeted at $900,000 for the year and the fixed overhead rate was estimated
to be $3 per unit. Both fixed and variable overhead are applied to the product on the basis of
direct labor hours. The actual data for the year ended November 30, 2022 are:
Actual production in units = 198,000
Actual direct labor hours = 440,000
Actual variable overhead = $352,000
Actual fixed overhead = $575,000
a. What were the standard hours allowed for actual production for the year ended November 30, 2022?
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 Mooven's production for the year?
f. What was the FOH production volume variance for the year?
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