Basic Overhead Variances Derf Company Applies Overhead on the Basis of Direct Labor

question 1

Essay

Basic Overhead Variances
Derf Company applies overhead on the basis of direct labor hours.Two direct labor hours are required for each product unit.Planned production for the period was set at 9,000 units.Manufacturing overhead for the period is budgeted at $135,000,of which 20 percent is fixed.The 17,200 hours worked during the period resulted in production of 8,500 units.Manufacturing overhead cost incurred was $136,500.
Required:
Calculate the following three overhead variances:
a.Overhead volume variance.
b.Overhead efficiency variance.
c.Overhead spending variance.

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Definitions:

Cultural Goals

The aspirations, ideals, or objectives that a society or a community encourages its members to strive towards.

Deviant Behavior

Actions or behaviors that violate societal norms or expectations, which can elicit negative or positive reactions from others.

Structurally Available Means

Refers to the resources and opportunities that are distributed within a society, affecting individuals' ability to achieve goals.

Merton

Merton refers to Robert K. Merton, an influential 20th-century sociologist known for developing theories on social structure, anomie, and the sociology of science.