Cost Accounting: Calculating Variances
Ben Simon Corp. has the following information about its standards and production activity in November:
Total factory overhead incurred:
Variable overhead $31,350
Fixed overhead 25,000
Standard factory overhead rate:
Variable overhead $ 3.10 per unit
Fixed overhead $ 2 per unit
Budgeted units to be produced 12,000
Actual units produced 9,600
Required: Calculate the following variances (be sure to indicate whether the variance is favorable or unfavorable.
(A) Variable overhead flexible budget variance
(B) Fixed overhead spending variance
(C) Fixed overhead production volume variance
