Concept explainers
Computing
1. FOH VoL Var. $3,000 U Mason Fender is a competitor of Matthews Fender from Exercise E23-19. Mason Fender also uses a
Static budget variable overhead | $ 2,300 |
Static budget fixed overhead | $23,000 |
Static budget direct labor hours | 575 hours |
Static budget number of units | 23,000 units |
Standard direct labor hours | 0,025 hours per fender |
Mason Fender allocates manufacturing overhead to production based on standard direct labor hours. Mason Fender reported the following actual results for 2018: actual number of fenders produced, 20,000: actual variable overhead, $5,350: actual fixed overhead, $26,000: actual direct labor hours, 460
Requirements
1. Compute the overhead variances for the year variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance.
2. Explain why the variances are favorable or unfavorable,
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