Harper Company’s performance report indicated the following information for the past month. Actual total overhead $1,600,000 Budgeted fixed overhead 1,500,000 Applied fixed overhead at $3 per labor hour 1,200,000 Applied variable overhead at $.50 per labor hour 200,000 Actual labor hours 430,000 Harper’s total overhead spending variance for the month was

The JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced on the basis of standard direct labor hours. The denominator level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory overhead was $410,000 for the year. Based on this information, the variable overhead spending variance for JoyT for this year was

Huffman Corporation’s budget indicated that it should produce 50,000 units of finished goods while incurring 20,000 hours of direct labor and $150,000 of variable manufacturing overhead. Huffman actually produced 52,000 finished goods units using 22,000 hours of direct labor and incurring $160,000 of variable manufacturing overhead. If Huffman uses a standard cost system and applies variable manufacturing overhead based upon direct labor hours, its variable overhead spending variance is

Last year, Elegis Skin Care, Inc., budgeted $600,000 of fixed overhead for its plant that manufactures moisturizing cream. The $600,000 was based on a denominator activity level of 40,000 machine hours. There are 0.1 standard machine hours for each bottle of moisturizing cream. 350,000 bottles of moisturizing cream were produced, and 360,000 bottles were sold last year. What was the production volume variance?

A company using a standard cost system established a standard fixed cost per finished unit of $4.00 and forecasted production and sales of 300,000 units. For the year, the company experienced an unfavorable production volume variance of $14,000. Which one of the following would be the cause of this variance?

Michael Corporation’s flexible budgeted cost for indirect materials, a variable overhead cost, is $2.15 per unit of output. The company’s flexible budget performance report for last month showed a $4,500 favorable variance for the indirect materials. During that month, 19,700 units were produced. Budgeted activity for the month had been 19,000 units. The actual costs incurred for indirect materials were

International Corporation uses a standard costing system and allocates variable overhead costs based on direct labor hours. The annual budget projected 1,000 finished units, 10,000 hours of direct labor, and $100,000 of variable overhead costs. At the end of the year, 750 units were completed using 8,000 hours of direct labor and $75,000 in variable overhead. What is the variable overhead spending variance?