Elements of Labor and Variable Overhead Variances Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours Presented is selected information for last month when 10,000 units were produced Required Solve for items a through h Direct labor Variable overhead Actual Standard hours unit Actual hours (total) 6,500 6,500 Standard rate hour $36 00 $24 00 Actual rate $37 80 Flexible budget $90,000 $60,000 Labor rate or variable overhead spending variance UF UF Efficiency variances UF UF Total flexible budget variance UF $4,000 F Elements of Labor and Variable Overhead Variances Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours Presented is selected information for last month when 10,000 units were produced Required Solve for items a through h Direct labor Variable overhead Actual Standard hours unit Actual hours (total) 6,500 6,500 Standard rate hour $36 00 $24 00 Actual rate $37 80 Flexible budget $90,000 $60,000 Labor rate or variable overhead spending variance UF UF Efficiency variances UF UF Total flexible budget variance UF $4,000 F

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Elements of Labor and Variable Overhead Variances Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours. Presented is selected

Elements of Labor and Variable Overhead Variances Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours. Presented is selected information for last month when 10,000 units were produced.

Required Solve for items "a" through "h."

Direct labor

Variable overhead

Actual

Standard hours/unit

Actual hours (total)

6,500

Standard rate/hour

$36.00

$24.00

Actual rate

$37.80

Flexible budget

$90,000

$60,000

Labor rate or variable overhead spending variance

Efficiency variances

Total flexible budget variance

$4,000

F Elements of Labor and Variable Overhead Variances

Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours. Presented is selected information for last month when 10,000 units were produced.

Required Solve for items "a" through "h."

	Direct labor		Variable overhead
Actual
Standard hours/unit
Actual hours (total)	6,500		6,500
Standard rate/hour	$36.00		$24.00
Actual rate	$37.80
Flexible budget	$90,000		$60,000
Labor rate or variable overhead spending variance		UF		UF
Efficiency variances		UF		UF
Total flexible budget variance		UF	$4,000	F