Standard overhead per direct labor hour based on
normal monthly capacity of 30000 hours
Fixed ($270000 / 30000) $9
Variable (660000 / 30000) 22 $31
Direct Labor Hours actually worked 28000
Actual Overhead cost incurred
including $270000 fixed costs $824000
(a) Compute the amount of overhead applied to Work-in-Process during month. $_______________
(b) Compute the total manufacturing overhead budgeted based on hours worked during month. $_______________
(c) Compute the overhead spending variance for month. Indicate whether favorable (F) or unfavorable (U). $_______________
(d) Compute the overhead volume variance for month. Indicate whether favorable (F) or unfavorable (U). $_______________