Rip Tide Company manufactures surfboards. Its standard cost information follows.

Rip Tide has the following actual results for the month of June:
Number of units produced and sold ....... 312
Number of square feet of fiberglass used ..... 4,920
Cost of fiberglass used ...........$27,552
Number of labor hours worked ........ 3,060
Direct labor cost ...............$47,736
Variable overhead cost ...........$14,790
Fixed overhead cost ............$24,600

Required:
Calculate the following variances for Rip Tide:
1. Variable overhead rate variance.
2. Variable overhead efficiency variance.
3. Total over or under-applied variable overhead.
4. Fixed overhead spending (budget) variance.
5. Fixed overhead volume variance.
6. Total over- or under-applied fixedoverhead.

Transcribed Image Text:

Standard Quantity Standard Price Standard Unit Cost Direct materials (fiberglass) Direct labor Variable manufacturing overhead 15 sq. ft. 10 hr 10 hr (Rate) 5 per so $15 per hr S6 per hr 75.00 150.00 60.00 (based on direct labor hours) Fixed manufacturing overhead 80.00 ($24,000 300 units)