university of central oklahoma Operations And Supply Chain Management Assignment Help - expected monthly

Question - Pier Corp. has an expected monthly capacity of 9,000 units but only 5,700 units were produced and
6,000 direct labor hours were used during August 2010 due to a flood in the manufacturing facility.
Actual variable overhead for August was $48,165 and actual fixed overhead was $140,220.
Standard cost data follow:
Standard Cost per Unit
(One Unit Takes One Labor Hour)
Direct material …………………..$9.00
Direct labor …………………….15.00
Variable overhead ……………….. 8.00
Fixed overhead …………………16.00
Total …………………………… $ ...Read More 48.00
a. Compute and compare the actual overhead cost per unit with the expected overhead cost per unit.
b. Calculate overhead variances using the four-variance method.
c. Explain why the volume variance is so large. ...Read Less

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