Question

Ninna Company manufactures wooden shelves. An accountant for Ninna just completed the variance report for the current month. After printing the report, his computer's hard drive crashed, effectively destroying most of the actual results for the month. The accountant remembers that actual production was 250 shelves and that all materials purchased were used in production. The following information is also available:

Current Month: Budgeted Amounts
Budgeted production: 225 shelves
Direct materials: Wood
Usage 4 square feet per shelf
Price $0.20\$0.20per square foot
Direct labor:
Usage 0.4 hours per shelf
Rate $12\$12 per hour
Variable overhead (allocated based on direct labor hours):
Rate per labor hour $5\$5
Rate per shelf $2\$2
Fixed overhead (allocated based on direct labor hours):
Rate per labor hour $10\$10
Rate per shelf $4\$4
Current Month: Variances
Direct materials price variance $$40 Unfavorable
Direct materials quantity variance 0–0–
Direct labor rate variance 200 Favorable
Direct labor efficiency variance 300 Unfavorable
Overhead volume variance 50 Favorable
Overhead spending variance 100 Unfavorable

Instructions

Using the budget for the current month and the variance report, construct the items below:

d. What was the actual total overhead for the month?

Solution

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Answered 9 months ago
Answered 9 months ago
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In this problem, we are asked to compute the actual total overhead for the month.

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