60.1K

Verified Solution

Link Copied!

(The following information applies to the questions displayed below.) Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 Ibs. $2.20 per Ib.) Direct labor (10 hrs. $4.60 per hr.) Variable overhead (10 hrs. $3.00 per hr.) Fixed overhead (10 hrs. $1.50 per hr.) Total standard cost $66.00 46.00 30.00 15.00 $157.00 The $4.50 ($3.00 + $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 65,000 units per month. The following monthly flexible budget information is also available. Flexible Budget Budgeted output (units) Dudgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Pixed overhead Total overhead Operating levels of capacity) 651 705 751 42,250 45,500 48,750 422.500 455,000 487,500 $1.267,500 $1,365,000 $1,462,500 682,500 682.500 682,500 $1,950,000 $2,047,500 $2,145,000 During the current month, the company operated at 65% of capacity, employees workeg 400,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Faxed overhead costs Total overhead costs $1,224,000 730,000 $1.954,000 SVR = Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Controllable variance

Answer & Explanation Solved by verified expert

See Answer