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Mathematics, 14.08.2020 18:01 electrofy456
Adom Company uses a standard cost system for its production process and applies overhead based on direct labour hours. The following information is available for May when Adom produced 4,500 units: Standard: Direct labour hour per unit - 2.50, Variable overhead per direct labour hour - GH¢1.75, the fixed overhead per direct labour hour - GH¢3.10, Budgeted variable overhead - GH¢21,875, Budgeted fixed overhead - GH¢38,750. Actual: Direct labour hours - 10,000, Variable overhead- GH¢26,250, Fixed overhead- GH¢38,000. Calculate the total variable overhead cost and total fixed overhead cost variance, indicating the respective spending or expenditure variance and efficiency (volume) variance.
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