Question
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000
At the beginning of the year, you estimated the following -
Production - 75,000 units
Raw Material - 270,000 pounds at a cost of $1,026,000
Direct Labor - 187,500 hours at a cost of $4,125,000
Variable Overhead - 135,000 machine hours at a cost of $567,000
Fixed Overhead - $900,000
At the end of year, the actual results were as follows -
Production - 73,000 units
Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308
Direct Labor - 179,580 hours at a cost of $3,968,718
Variable Overhead - 133,590 machine hours at a cost of $558,406.20
Fixed Overhead - $891,000
16) The Total Variance for Direct Labor is Favorable.
17) What is the Variable Overhead standard for machine hours per unit ?
18) What is the standard rate per machine hour for Variable Overhead ?
19) What is the Efficiency Variance for Variable Overhead ?
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