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Cornerstone Exercise 9.6 (Algorithmic) Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units
Cornerstone Exercise 9.6 (Algorithmic) Calculating the Total Overhead Variance
Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced | 131,600 |
Standard direct labor hours per unit | 0.2 |
Standard variable overhead rate (per direct labor hour) | $3.40 |
Actual variable overhead costs | $88,650 |
Actual hours worked | 26,500 |
Required:
1. Calculate the total variable overhead variance. $
2. What if actual production had been 128,900 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below. $
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