Nelson Co. manufactures a product that requires 3.5 machine hours per unit. The variable and...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Nelson Co. manufactures a product that requires 3.5 machine hours per unit. The variable and fixed overhead rates were computed using expected capacity of 115,200 units (produced evenly throughout the year) and expected variable and fixed overhead costs, respectively, of $1,612,800 and $2,822,400. In October, Nelson manufactured 9,520 units using 33,440 machine hours. October variable overhead costs were $132,000; fixed overhead costs were $235,600. a. What are the standard variable and fixed overhead rates? Standard VOH rate 4 per MH Standard FOH rate 7 per MH b. Compute the variable overhead variances. Note: Do not use a negative sign with your answer. VOH spending variance $ 1,760 Favorable VOH efficiency variance $ 480 Unfavorable Total VOH variance $ 1,280 Favorable C. Compute the fixed overhead variances. Note: Do not use a negative sign with your answer. FOH spending variance 400 Unfavorable $ FOH volume variance 0x Unfavorable Total FOH variance 0x Unfavorable $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
