The Following Information Relates to the Month of April for the Trolley

question 11

Essay

The following information relates to the month of April for The Trolley Manufacturing Company, which uses a standard cost accounting system.
$\begin{array}{lrr} \text {Actual direct labor hours used } &7,000\\ \text { Standard hours allowed for good output } &7,500\\ \text {Fixed overhead spending variance - unfavorable } &\$300\\ \text { Actual total overhead } &\$16,000\\ \text {Budgeted fixed costs } &\$4,500\\ \text { Normal activity in hours } &6,000\\ \text { Total overhead application rate per DLH}&\$2025\end{array}$

Required:
(Be sure to indicate whether the variances are favorable or unfavorable.)
a. What is the variable overhead efficiency variance?
b. What is the variable overhead price variance?
c. What is the fixed production volume variance?

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Definitions:

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Warm Words

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