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Uniform Company has developed standard overhead costs based on a capacity of 180 000 machine hours as follows: Standard costs per unit:
Variable portion
2 hours @ R3 = R6
Fixed portion
2 hours @ R5 = R10
During April, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to April:
Actual machine hours used were 165 000.
Actual overhead incurred totaled R1 378 000 (R518 000 variable plus R860 000 fixed).
All inventories are carried at standard cost.
Problem 1: Calculate the variable overhead spending variance for April.
A. R15 000 unfavourable.
B. R23 000 unfavourable.
C. R38 000 favourable.
D. R38 000 unfavourable.
What The value-added costs would be? A company has 19 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average
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