Question Help The following information relates to Brook, Inc. \'s overhead cost

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Question Help The following information relates to Brook, Inc. 's overhead costs for the month Click the icon to view the information. ) EE Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance and fixed overhead volume variance Explain why the variances are favorable or unfavorable Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. gin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount ual overhead -(Actual hours x Standard pri (Actual hours - Standard hours allowed) x Standard price Actual overhead - Budgeted overhead Budgeted overhead- Allocated overhead = VOH cost variance VoH efficiency variance FOH cost variance FOH volume variance number in the edit fields and then cl Che er Check Answer

Explanation / Answer

Static budget var OH 8000 $ Static budget Fixed OH 3200 $ Static budget DLH 1600 Hours Static budget No of units 4000 Units Standard LH per unit 0.4 Hour/Unit Budgeted OH 11200 $ Standard price 2.8 $/unit Actual var OH 10700 $ Actual Fixed OH 2840 $ Actual DLH 1725 Hours Actual no of units 6900 Units Actual LH per unit 0.25 Hour/Unit Actual OH 13540 $ Actual price 1.962319 $/unit VOH cost Var -5780 13540- (1725*2.8) Favorable VOH eff Var 8120 (6900-4000)*2.8 Favorable FOH cost Var 2340 13540-11200 Unfavorable FOH Volume Var -5690.72 (4000-6900)*1.96 Favorable

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