Question
Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C: The
Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C:
The following data pertain to the most recent month's operations during which 2,400 units of product N06C were made:
Required:
a. What was the variable overhead rate variance for the month? (Include "F", "U", or "None" on the far right box).
b. What was the variable overhead efficiency variance for the month? (Include "F", "U", or "None" on the far right box).
(Input all amounts as positive values.)
Standard direct labor-hours Standard variable overhead rate 4.0 hours per unit of N06C $ 6.10 per hour
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