Problem - Megan Corp.
"The following data are available for the Megan Corp. finishing department for the current year. The department makes a single product that requires three hours of labor per unit of finished product. Budgeted volume for the year was 30,000 direct labor hours."
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Budgeted Volume
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30,000
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Direct Labor Hours
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hrs of Labor per unit
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3
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|
|
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Overhead Efficiency Overhead
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$4,000.00
|
U
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|
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Budgeted Fixed Overhead
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$900,000.00
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|
|
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Number of units produced
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11,000
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|
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Standard Direct Labor Wage Rate
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$15.00
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|
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Total Overabsorbed overhead variance
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$92,000.00
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F
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|
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Direct Labor efficiency variance
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$15,000.00
|
U
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|
a. Calculate
Acutal Overhead Incurred
Overhead spending Variance
Actual # of direct labor hours
Budgeted variable overhead rate per direct labor hour
Overhead rate per direct labor hour
Overhead volume variance
Actual direct labor wage rate
b. Write a one-paragraph report summarizing the results of the operations.