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Windsor Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,600 units. Manufacturing overhead is budgeted at $129,000 for the period (20% of this cost is fixed). The 17,030 hours worked during the period resulted in the production of 8,400 units. The variable manufacturing overhead cost incurred was $104,800 and the fixed manufacturing overhead cost was $28,000. Calculate the variable overhead spending variance for the period. Variable overhead spending variance $ Calculate the variable overhead efficiency (quantity) variance for the period. Variable overhead efficiency variance $ Calculate the fixed overhead budget (spending) variance for the period. Fixed overhead budget variance $ Calculate the fixed overhead volume variance for the period. Fixed overhead volume variance Unfavourable + $ Is the value favourable or unfavourable? + +

Windsor Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,600 units. Manufacturing overhead is budgeted at $129,000 for the period (20% of this cost is fixed). The 17,030 hours worked during the period resulted in the production of 8,400 units. The variable manufacturing overhead cost incurred was $104,800 and the fixed manufacturing overhead cost was $28,000. Calculate the variable overhead spending variance for the period. Variable overhead spending variance $ Calculate the variable overhead efficiency (quantity) variance for the period. Variable overhead efficiency variance $ Calculate the fixed overhead budget (spending) variance for the period. Fixed overhead budget variance $ Calculate the fixed overhead volume variance for the period. Fixed overhead volume variance Unfavourable + $ Is the value favourable or unfavourable? + +

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Windsor Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,600 units. Manufacturing overhead is budgeted at $129,000 for the period (20% of this cost is fixed). The 17,030 hours worked during the period resulted in the production of 8,400 units. The variable manufacturing overhead cost incurred was $104,800 and the fixed manufacturing overhead cost was $28,000. Calculate the variable overhead spending variance for the period. Variable overhead spending variance $ Calculate the variable overhead efficiency (quantity) variance for the period. Variable overhead efficiency variance Calculate the fixed overhead budget (spending) variance for the period. Fixed overhead budget variance Calculate the fixed overhead volume variance for the period. Unfavourable Fixed overhead volume variance Is the value favourable or unfavourable?
Transcribed Image Text:Windsor Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 8,600 units. Manufacturing overhead is budgeted at $129,000 for the period (20% of this cost is fixed). The 17,030 hours worked during the period resulted in the production of 8,400 units. The variable manufacturing overhead cost incurred was $104,800 and the fixed manufacturing overhead cost was $28,000. Calculate the variable overhead spending variance for the period. Variable overhead spending variance $ Calculate the variable overhead efficiency (quantity) variance for the period. Variable overhead efficiency variance Calculate the fixed overhead budget (spending) variance for the period. Fixed overhead budget variance Calculate the fixed overhead volume variance for the period. Unfavourable Fixed overhead volume variance Is the value favourable or unfavourable?
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