Jake Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard....

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Accounting

Jake Company, which manufactures electrical switches,uses a standard cost system and carries all inventories atstandard. The standard manufacturing overhead costs per switch arebased on direct labor hours and are shown below:
Variable overhead (5 hours @ $12 per directmanufacturing laborhour)        $ 60
Fixed overhead (5 hours @ $15* per directmanufacturing labor hour) $75
Total overhead perswitch                                           $135
*Based on capacity of 200,000 direct manufacturinglabor hours per month.
The following information is available for the monthof November:
?      46,000 switcheswere produced although 40,000 switches were scheduled to beproduced.
?      225,000 directmanufacturing labor hours were worked at a total cost of$5,625,000.
?      Variablemanufacturing overhead costs were $2,750,000.
?       Fixedmanufacturing overhead costs were $3,050,000.
A multi part question

The total variable manufacturing overhead variancewas?

What amount should be credited to the AllocatedManufacturing Overhead Control account for the month ofDecember?

Under the 2-variance method, the flexible-budgetvariance for December was?

Under the 3-variance method, the spending variance forDecember was?

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3.9 Ratings (383 Votes)

Requirement A Variable overhead spending variance Actual Input Actual Rate Actual Inputs Budgeted Rate 2750000 225000 hours 12 50000 Unfavorable Variable overhead See Answer

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