Question
Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Direct labor 0.50
Corporation makes a product with the following standards for direct labor and variable overhead:
| Standard Quantity or Hours | Standard Price or Rate | ||||||||||
| Direct labor | 0.50 | hours | $ | 30.00 | per hour | ||||||
| Variable overhead | 0.50 | hours | $ | 5.00 | per hour | ||||||
In August the company produced 8,900 units using 4,620 direct labor-hours. The actual variable overhead cost was $21,714. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead efficiency variance for August is:
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Marketing Audit And Performance A Case Of Parastatals Marketin Audit And Performance
Authors: Bonventure Onyango Odote, Wyckliffe Otieno Robby
1st Edition
365946595X, 978-3659465956
