Recharge Corp. manufactures high speed blenders. The following is manufacturing overhead data for the company for...

Recharge Corp. manufactures high speed blenders. The following is manufacturing overhead data for the company for the year ended December 31, 2019.

Manufacturing Overhead	Actual Overhead Costs	Budgeted Overhead Costs
Variable	102,600	93,600
Fixed	348,840	378,000

Budgeted number of output (in units) 1,200

Budgeted machine hours per unit: 3

Budgeted machine hours 3,600

Actual number of machine hours 3,420

Required:

(A) Compute the variable overhead spending variance and the variable overhead efficiency variance. Indicate whether the variance is favourable or unfavourable.

(B) Compute the fixed overhead spending variance and the fixed overhead volume variance. Indicate whether the variance is favourable or unfavourable.

(C) In general, what do each of the variable overhead variances and the fixed overhead variances tell us?

Expert Solution

Thankyou.......

ekkarill92 answered 2 years ago

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