Benjamin Inc

question 96

Essay

Benjamin Inc.uses a standard cost system and has the following information regarding the labor and overhead used in the production of widgets.Standard labor input is 2 hours per unit.The variable overhead rate is $8 per hour;fixed overhead is budgeted to be $100,000 on budgeted production of 8,000 widgets.During August,Benjamin Inc.paid its workers $161,670 for 16,800 hours.Actual variable overhead incurred totaled $133,560,and actual fixed overhead totaled $98,956.Benjamin Inc.produced 8,600 widgets during August.Calculate the:
a.variable overhead rate variance.
b.variable overhead efficiency variance.
c.fixed overhead spending variance.

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Definitions:

Mismanagement

Poor or ineffective management practices that result in a failure to achieve desired outcomes or handle resources responsibly.

Dominion of New England

A short-lived administrative union of English colonies in North America created by King James II in 1686.

Disbanding

The act of formally dissolving or breaking up a group, organization, or military unit, often resulting in its members dispersing or ceasing operations.

Massachusetts

A state in the New England region of the United States, known for its significant colonial history, higher education institutions, and technological research.