Cost Control at Netflix

• Values:
  • Total Overhead Costs: $70,000,000
  • Standard Hours Allowed: 250,000 hours
  • Actual Hours Worked: 270,000 hours
  • Variable Overhead Rate: $8 per hour

• Requirements:
  1. Calculate the variable overhead spending and efficiency variances.
  2. Analyze the variances and their impact on cost control.
  3. Discuss the role of variance analysis in the entertainment industry.
  4. Suggest measures to enhance cost control at Netflix.