Reference no: EM132774966
Question - Hunter Company uses a standard cost system when accounting for its sole product.
Planned production is 60,000 process hours per month, which gives rise to the following per-unit standards:
Variable overhead: 13 hours at $15 per hour
Fixed overhead: 13 hours at $7 per hour
During September, 5,100 units were produced and Hunter incurred the following overhead costs: variable, $942,500; fixed, $429,000.
Actual process hours totaled 65,000.
REQUIRED -
1. Calculate the spending and efficiency variances for variable overhead.
2. Calculate the budget and volume variances for fixed overhead.
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