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Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00 ÷ 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,700 direct labor hours (5,700 units) for the month. The master budget showed total variable costs of $42,750 ($7.50 per hour) and total fixed overhead costs of $37,050 ($6.50 per hour). Actual costs for October in producing 4,600 units were as follows.
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
1. Compute the total overhead variance.
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Zephre Company reported net income for the year of $56,000. Depreciation expense for the year was $12,000. During the year, accounts receivable increased by $4,000, inventory decreased by $6,000, accounts payable increased by $3,000, and accrued e..
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