Total budgeted manufacturing overhead

Reference no: EM13139571

King Company estimated that it would operate its manufacturing facilities at 800,000 direct labour-hours for the year and this served as the denominator activity in the predetermined overhead rate. The total budgeted manufacturing overhead for the year was $2,000,000, of which $1,600,000 was variable and $400,000 was fixed. The standard variable overhead rate was $2 per direct labour-hour. The standard direct labour time was 3 direct labour-hours per unit. The actual results for the year are presented below:

Actual finished units 250,000

Actual direct labour-hours 764,000

Actual variable overhead $1,610,000

Actual fixed overhead $392,000

Calculate the following:

(a) The variable overhead spending variance for the year

(b) The variable overhead efficiency variance for the year

(d) The fixed overhead volume variance for the year

Reference no: EM13139571

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