Tipton company manufactures shirts. During June Tipton made 1200shirts but had budgeted production at 1400 shirts.

Tipton gathered the following additional data:

Variable overhead cost standard	$0.50 per DLHr
Direct labor efficiency standard	2.00 DLHr per shirt
Actual amount of direct labor hours	2,520 DLHr
Actual cost of variable overhead	$1,512
Fixed overhead cost standard	$0.25 per DLHr
Budgeted fixed overhead	$700
Actual cost of fixed overhead	$750

13. Calculate the variable overhead costvariance.

Select the formula, then enter the amounts and compute the costvariance for variable overhead (VOH) and identify whether thevariance is favorable (F) or unfavorable (U).

(

-

)

x

=

VOH Cost Variance

(

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)

x

=

14. Calculate the variable overhead efficiencyvariance.

Select the formula, then enter the amounts and compute theefficiency variance for variable overhead and identify whether thevariance is favorable (F) or unfavorable (U).

(

-

)

x

=

VOH Efficiency Variance

(

-

)

x

=

15. Calculate the total variable overheadvariance

The total variable overhead variance is

.

16. Calculate the fixed overhead costvariance

Select the formula, then enter the amounts and compute the costvariance for fixed overhead (FOH) and identify whether the varianceis favorable (F) or unfavorable (U).

-

=

Fixed Overhead Cost Variance

-

=

17. Calculate the fixed overhead volumevariance

First, select the formula, then enter the amounts and computethe fixed overhead allocated to production. (Abbreviations used: SQ= standard quantity, AO = actual output.)

	x		=	Overhead allocated to production
	x		=

Now, select the formula, then enter the amounts and compute thefixed overhead volume variance and identify whether the variance isfavorable (F) or unfavorable (U).

-

=

Fixed Overhead Volume Variance

-

=

18. Calculate the total fixed overheadvariance.

The total fixed overhead variance is

.