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Bridgeport Co. uses a standard job cost system with a normal capacity of 25,800 direct labour hours. Bridgeport Co. produces 12,800 units, which cost
Bridgeport Co. uses a standard job cost system with a normal capacity of 25,800 direct labour hours. Bridgeport Co. produces 12,800 units, which cost $213,300 for direct labour (23,700 hours), $25,600 for variable overhead, and $140,160 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10.40 (2 hours at $5.20 per hour). Calculate the variable overhead spending variance and the variable overhead efficiency variance. Variable overhead spending variance Variable overhead efficiency variance +A $ +A $ Favourable Unfavourable Neither favourable nor unfavourable
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