Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations:

Volte never has any work-in-process inventories and began the year with no finished goods inventory. 

Required

a. What was the variable overhead price variance for the period?

b. What was the variable overhead efficiency variance for the period?  

c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances computed in requirements (a) and (b).

d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances computed in requirements (a) and (b).

Transcribed Image Text:

Standard variable overhead rate.. Actual output.... Actual direct labor-hours used.. Standard direct labor-hours... Actual direct labor cost incurred. Standard direct labor-hour rate.. Actual variable overhead incurred Actual units sold.... $2.50 per direct labor-hour 25,000 units 34,500 1.5 per unit $819,000 $22 $92,500 20,000 units