Zelda Corp. makes pottery for people to store items in, Most of the indirect costs used...

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Accounting

Zelda Corp. makes pottery for people to store items in, Most ofthe indirect costs used to make these pots are associated with themanufacturing process. This means that Samantha Inc. allocatesvariable and fixed manufacturing overhead on the basis of machinehours. On January 1st, Zelda Corp. planned on making 4,500 claypots for the month. They believed it would take 10,125 machinehours and 2,250 direct labor hours to make these pots. Theybelieved their total manufacturing overhead would be $95,175, with$60,750 coming from variable manufacturing overhead. On February1st, found that for January they had made 4,450 clay pots and thaton average, each pot took 2.3 machine hours and .6 direct laborhours to make. Their manufacturing overhead ended up being$101,933, with $42,570 coming from fixed manufacturing overhead.Using this information please conduct a 4 variance analysis forboth Variable and Fixed Manufacturing Overhead.

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Budget Actual Output 4500 4450 Direct lab hoursper unit 06 Machine hour per unit 23 Total lab hours 2250 2670 actual output06 Machine hours 10125 10235 actual output23 Variable OH 60750 59363 10193342570 Fix OH 34425 9517534425 42570 Total OH 95175 101933 See Answer

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