#17

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead efficiency variance.

Direct labor standard (2 hrs. @ $12.60/hr.) $25.20 per finished unit

Actual direct labor hours 88,500 hrs.

Budgeted units 45,500 units

Actual finished units produced 43,500 units

Standard variable OH rate (2 hrs. @ $15.20/hr.) $30.40 per finished unit

Standard fixed OH rate ($412,800/48,000 units) $8.60 per unit

Actual cost of variable overhead costs incurred $1,316,000

Actual cost of fixed overhead costs incurred $415,000

$21,200F $15,200U $21,200U $40,900U $40,900F