16.21 Total overhead, variance analysis. (35–50 min) 1 This problem has two major purposes (a) to give experience with data allocated on a total overhead basis instead of on separate variable and fixed bases and (b) to reinforce distinctions between actual hours of input, budgeted (standard) hours allowed for actual output, and denominator level. An analysis of direct manufacturing labour will provide the data for actual hours of input and standard hours allowed. One approach is to plug the known figures designated by asterisks) into the analytical framework and solve for the unknowns. The direct manufacturing labour efficiency variance can be calculated by subtracting SKr9,640 from SKr14,440. The complete picture is
