The following information is available for Wick Co for month 1 Budgeted Fixed overheads $20,000 to be absorbed at $10/hr Time to make one unit 4 hoursActual Fixed overheads $23,000 Time taken to make 550 units 2,475 hours Calculate the fixed overhead: (i) Expenditure variance and state if it is favourable or adverse. (ii) Capacity variance and state if it is favourable or adverse. (iii) Efficiency variance and state if it is favourable or adverse.
【参考答案及解析】
(i) The expenditure variance is $23,000 - $20,000 = $3000 and is adverse (ii) The capacity variance is (2,475 hours x $10) - $20,000 = $4,750 and is favourable (iii) The efficiency variance is (550 units x 4 hours x $l〇) - (2,475 hours x $l〇)= $2,750 and is adverse
(i) The expenditure variance is $23,000 - $20,000 = $3000 and is adverse (ii) The capacity variance is (2,475 hours x $10) - $20,000 = $4,750 and is favourable (iii) The efficiency variance is (550 units x 4 hours x $l〇) - (2,475 hours x $l〇)= $2,750 and is adverse