Gleason Company has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity. Fixed overhead is $360,000 and variable overhead is $180,000 at this level of activity.
During the current period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Calculate the variable overhead spending and efficiency variance and the fixed overhead spending and volume variances. Indicate whether each is favorable or unfavorable.
Definitions:
Economy Moves
The dynamic changes and shifts in economic activity and trends over time, including growth, recession, and recovery phases.
Demand
The quantity of a product or service that consumers are willing and able to buy at a given price over a specified period.
Quantity Supplied
The complete quantity of a product or service that producers are prepared and can offer for sale at a certain price during a particular timeframe.
Economy Moves
Refers to changes or shifts in the economic activities and conditions within a country or region.
Q8: Budgets are long-term financial plans that generally
Q24: Hatter, Inc. allocates fixed overhead at a
Q26: An expense that is readily traced to
Q48: Claremont Company sells refurbished copiers. During the
Q76: Least-squares regression is a statistical method for
Q84: iSooky has a spotter truck with a
Q96: Employees who will have performance evaluated according
Q125: Trago Company manufactures a single product and
Q137: Under absorption costing, a company had the
Q178: The difference between actual price per unit