Topic:ANSWER BOTH QUESTIONS
Subject:Accounting
Volume: 1 page
Format: MLA
Description
16-35. Variable Cost Variances
The following data reflect the current month’s activity for Ritters’ Corporation:
Actual total direct labor $688,200
Actual hours worked 39900
Standard labor-hours allowed for actual output (flexible budget) 36,000
Direct labor price variance $23,600 F
Actual variable overhead $157,200
Standard variable overhead rate per standard direct labor-hour $6.20
Variable overhead is applied based on standard direct labor-hours allowed.
Required
Compute the labor and variable overhead price and efficiency variances.
6-39. Fixed Cost Variances
Information on Coroney Company’s fixed overhead costs follows:
Overhead applied $380,000
Actual overhead 370,500
Budgeted overhead 370,000
Required
What are the fixed overhead price and production volume variances?
