(SOLVED) The data below relate to Super Fit Ltd a manufacture


Question Description:

$20

The data below relate to Super Fit Ltd, a manufacture of exercise equipment, for the month of August:
Standard variable overhead rate ………………………… $18 per machine hour
Standard quantity of machine hours ……………………… 2 hours per unit of output
Budgeted fixed overhead ……………………………………………. $180 000
Budgeted output …………………………………………………. 15 000 units
Actual results for August are as follows:
Actual output ………………………………………………… 13 500 units
Actual variable overhead ……………………………………….. $504 900
Actual fixed overhead …………………………………………… $183 000
Actual machine time ………………………………. 29 700 machine hours
Required:
Calculate the following variances, indicating whether each variance is favourable or unfavourable.
1. Variable overhead spending variance.
2. Variable overhead efficiency variance.
3. Fixed overhead budget variance.
4. Fixed overhead volume variance?

Answer

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