Factory Overhead Variances Shateau Job Shop had the following operating data for its operations in 2010:
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Budgeted fixed overhead
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$20,000
|
|
Standard variable overhead application rate
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$3 per MH
|
|
Fixed overhead incurred
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$21,400
|
|
Variable overhead incurred
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$32,500
|
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Practical capacity (5,000 units)
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10,000 MH
|
|
Actual machine hours (MH) worked
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9,500
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Units produced
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4,500
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Required: Build an Excel spreadsheet for the Shateau Job Shop that computes the following:
1. Variable overhead spending variance.
2. Variable overhead efficiency variance.
3. Fixed overhead spending (budget) variance.
4. Production-volume variance.
5. Overhead spending variance using a three-variance analysis.
6. Overhead flexible-budget (controllable) variance using a two-variance analysis.