1

Colton Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor hours. During March, Colton recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured.

What is the total variable overhead variance for March for Colton? (Be sure to show all work)

2

Explain how a) reworked units and spoilage b) normal and c) abnormalare accounted for in a job-order costing system. Be sure to label each answer clearly.