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German Masks makes customized goalie masks

Accounting

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German Masks makes customized goalie masks.

 

Our variable overhead rate is $38 per Direct Labor Hour.

Our standard for production is 12 direct labor hours per custom hockey goalie mask produced.

Our fixed overhead budget is $89,000. Fixed overhead is applied per mask.

Budgeted production 800 masks.

 

Actual production 780 masks.

 

Actual costs:

           Variable overhead $383,500.

           Fixed overhead $87550.

           Direct labor hours: 9285.

 

Calculate:

 

Variable overhead spending variance $ ____________________________

 

Variable overhead efficiency variance $ ____________________________

 

Fixed overhead application rate: $  ________________ per mask

 

Fixed overhead spending variance $ ___________________________

 

Fixed overhead production volume variance $ ________________________

 

Be sure to indicate whether each variance is F (favorable) or U (unfavorable).