Gala Enterprises Collected the Following Data Regarding Production of One

Essay

Gala Enterprises collected the following data regarding production of one of its products. Compute the variable overhead cost variance, the variable overhead spending variance, the variable overhead efficiency variance, the fixed overhead cost variance, the fixed overhead spending variance, and the fixed overhead volume variance.
$\begin{array} { l l } \text { Direct labor standard (2 hrs. @ \$15/hr.) } & \$ 30.00 \text { per finished unit } \\\text { Actual direct labor hours } & 60,800 \text { hrs. } \\\text { Budgeted units } & 31,000 \text { units } \\\text { Actual finished units produced } & 30,000 \text { units } \\\text { Standard variable OH rate } ( 2 \text { hrs. @ } \$ 14.00 / \mathrm { hr } . ) & \$ 28.00 \text { per finished unit } \\\text { Standard fixed OH rate } ( \$ 310,000 / 31,000 \text { units) } & \$ 10.00 \text { per unit } \\\text { Actual variable overhead costs incurred } & \$ 857,600 \\\text { Actual fixed overhead costs incurred } & \$ 312,000\end{array}$