FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Crystal Glassware Company has the following standards and flexible-budget data.
Standard variable-
Standard quantity of direct labor ............................... 2 hours per unit of output
Budgeted fixed overhead ..................................................... $100,000
Budgeted output ............................................................................................... 25,000 units
Actual results for April are as follows:
Actual output ..................................................................................... 20,000 units
Actual variable overhead ............................................................... $320,000
Actual fixed overhead ...................................................................... $97,000
Actual direct labor ............................................................................. 50,000 hours
Use the variance formulas to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.
1. Variable-overhead spending variance.
2. Variable-overhead efficiency variance.
3. Fixed-overhead
4. Fixed-overhead volume variance.
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