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Variable Overhead Cost Assignment | Top Universities

Author:
February 13th, 2020

Sharp Company manufactures jeans. In June, Sharp made 1200 pairs of jeans but had budgeted production at 1400 pairs of jeans. The allocation base for overhead costs is direct labor hours. The following additional data is available for the month:

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Variable overhead cost standard Direct labor efficiency standard Actual amount of direct labor hours Actual cost of variable overhead Fixed overhead cost standard Budgeted fixed overhead Actual cost of fixed overhead AED 0.60 per DLHr 2.00 DLHr per jean 2,520 DLHr AED 1,512 AED 0.25 per DLHr AED 700 AED 750 Calculate the following variances: (30 Points, 5 pts ea.) (F) or (U) 8a. Variable overhead cost variance AED (F) or (U) AED 8b. Variable overhead efficiency variance (F) or (U) AED 8c. Total variable overhead variance _ (F) or (U) AED 8d. Fixed overhead cost variance (F) or (U) AED Se. Fixed overhead volume variance (F) or (U) AED 8f. Total fixed overhead variance. Get Accounting Homework Help Today.

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