1. The following shows factory overhead budget information for Los Alamitos, Inc., for the year:
|
Indirect materials used |
$0.50 per machine hour plus |
|
$6,000 fixed cost |
|
|
Indirect labor |
$92,000 fixed cost |
|
Repairs and maintenance |
$1.50 per machine hour plus |
|
$2,100 fixed cost |
|
|
Depreciation |
$9,500 fixed cost |
|
Rent |
$12,000 fixed cost |
In 19A, the company operated at 11,000 machine hours and incurred the following
overhead costs:
|
Indirect materials used |
$11,700 |
|
Indirect labor |
91,000 |
|
Power |
10,650 |
|
Repairs and maintenance |
19,200 |
|
Depreciation |
9,500 |
|
Rent |
12,500 |
Compare the flexible budget with the actual overhead, computing a variance for each item and for the total overhead. Indicate whether variances are favorable (F) or unfavorable (U).