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).