Oliver Corporation Uses a Standard Cost System When Accounting for Its

question 66

Essay

Oliver Corporation uses a standard cost system when accounting for its sole product. Planned production is 70,000 process hours per month, which gives rise to the following per-unit standards:
Variable overhead: 15 hours at $15 per hour
Fixed overhead: 15 hours at $8 per hour
During March, 5,100 units were produced and Oliver incurred the following overhead costs: variable, $842,500; fixed, $329,000. Actual process hours totalled 75,000.
Required:
A. Calculate the spending and efficiency variances for variable overhead.
B. Calculate the budget and volume variances for fixed overhead.

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Definitions:

Human Resource Professionals

Individuals specialized in managing the human aspects of organizations, focusing on policies and systems related to employee management and satisfaction.

Restructuring

Restructuring involves making significant changes to a company’s operations, structure, or finances, often to improve efficiency, competitiveness, or performance.

Just Cause

A legal standard that employers must meet to justify disciplinary actions or termination, demonstrating a valid and fair reason for their decisions.

Provincial Employment Standards

Regulations set by provincial governments outlining the minimum terms of employment, including hours of work, wages, and leave entitlements, to protect workers' rights.