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Emporia State University Operations And Supply Chain Management Assignment Help - Derf Company


Question - Derf Company applies overhead on the basis of direct labor hours. Two direct labor hours are
required for each product unit. Planned production for the period was set at 9,000 units.
Manufacturing overhead for the period is budgeted at $135,000, of which 20 percent is fixed. The
17,200 hours worked during the period resulted in production of 8,500 units. Manufacturing overhead
cost incurred was $136,500.Calculate the following three overhead variances:a. Overhead volume
variance.b. Overhead efficiency variance.c. Overhead spending variance.

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