The normal capacity of McDougall Company s Die Cutting Department is 4,500 machine hours per month....

The normal capacity of McDougall Company s Die Cutting Department is 4,500 machine hours per month. At normal capacity, the standard factory overhead rate is $24.80 per machine hour, based on budgeted fixed factory overhead of $85,500 per month and a variable overhead rate of $5.80 per machine hour. During July, the department operated at 4,600 machine hours, with actual factory overhead of $121,000. The number of standard machine hours allowed for the production actually attained is 4,200. Required: Compute the overall factory overhead variance and the spending variance, variable efficiency variance, and the volume variance. Indicate whether the variances are favorable or unfavorable.

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ekkarill92 answered 1 year ago

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