Reference no: EM132489845

Question - The Company planned to produce 25,000 units of product and work 100,000 direct labor hours in 2020. Manufacturing overhead at the 100,000 direct labor hours level of activity was estimated to be:

Variable manufacturing overhead $700,000

Fixed manufacturing overhead 300,000

Total manufacturing overhead $1,000,000

At the end of 2020, 26,000 units of product were actually produced and 107,000 actual direct labor hours were worked. Total actual overhead costs for 2020 was $1,015,000, of which $295,000 was fixed manufacturing overhead.

Required -

a) Calculate the total overhead variance.

b) Calculate the variable overhead budget variance.

c) Calculate the fixed overhead volume variance.