Exercise 11-11

At the start of 2018, Steering Express Company determined its standard labor cost to be 2.60 hours per unit at $13.00 per hour. The budget for variable overhead was $9 per unit, and budgeted fixed overhead was $15,000 for the year. Expected annual production was 6,000 units. During 2018, the actual cost of labor was $15 per hour. Steering Express produced 5,000 units requiring 12,400 direct labor hours. Actual overhead for the year was $54,940. Calculate labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Labor Rate Variance		$		FavorableNeither Unfavorable nor FavorableUnfavorable
Labor Efficiency Variance		$		FavorableUnfavorableNeither Unfavorable nor Favorable
Controllable Overhead Variance		$		FavorableNeither Unfavorable nor FavorableUnfavorable
Overhead Volume Variance		$		FavorableNeither Unfavorable nor FavorableUnfavorable