The following information is presented for the Carol Green Manufacturing Company. Standard variable manufacturing overhead rate
Question:
The following information is presented for the Carol Green Manufacturing Company.
• Standard variable manufacturing overhead rate is \($3.50\) per direct labor hour.
• Direct labor efficiency standard is three hours per finished unit.
• Budgeted production is 810 finished units.
• Production required 2,370 direct labor hours.
• Variable manufacturing overhead cost was $8,500.
• 775 finished units of product were produced.
Required:
a. Determine the variable manufacturing overhead spending variance.
b. Determine the variable manufacturing overhead efficiency variance in dollars.
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