Wally Warble (WW) makes wall units. For the year, the following details have bee

Question

Wally Warble (WW) makes wall units. For the year, the following details have been budgeted: output is 10,000 units and factory overhead is $1,250,000, of which 60% is variable. Each wall unit should take 2.5 hours of direct labor to produce. WW produced 9,500 wall units with 24,000 DLH used and $1,175,000 was spent.

Which of the following statements is TRUE of Wally Warble's overhead variances?
Answer

Overhead spending variance is $45,000 F
Overhead efficiency variance is $7,500 F
Overhead volume variance is $25,000 F
Overhead spending variance is $37,500 F

Explanation / Answer

Which of the following statements is TRUE of Wally Warble's overhead variances? Answer Overhead spending variance is $37,500 F

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