Reference no: EM132477687
Question - Walkenhorst Company's machining department prepared its 2016 budget based on the following data:
Practical capacity 40,000 units
Machine hours per unit 2.00
Variable factory overhead $3.00 per machine hour
Fixed factory overhead $400,000
The department uses machine hours to apply factory overhead. In 2016, the department used 85,400 machine hours and $659,000 in total manufacturing overhead to manufacture 42,040 units. Actual fixed overhead for the year was $405,000.
Required -
1. What is the total overhead spending variance?
2. What is the overhead efficiency variance?
3. What is the variable and fixed overhead spending variances?
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: The department uses machine hours to apply factory overhead. In 2016, the department used 85,400 machine hours. What is the total overhead spending variance
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