Ever-Sharp Lawnmowers Ltd

Essay

Ever-Sharp Lawnmowers Ltd.controls variable manufacturing overhead costs with assembly-line hours as the denominator.Fixed manufacturing overhead costs are applied on a unit-of-output basis.Each lawnmower is allowed 10 assembly-line hours and standard variable manufacturing overhead totals $650 per unit.Budgeted fixed manufacturing overhead totals $29,400 for 420 lawnmowers.During July 4,200 assembly-line hours were incurred and 400 lawnmowers were produced.Actual manufacturing overhead costs for July were $260,400 for variable expenses and $32,300 for fixed expenses.Required:
a.Compute a 4-variance analysis for the month of July.
b.Compute a 3-variance analysis for the month of July.
c.Compute a 2-variance analysis for the month of July.