Question
hi can you help me with an expalantion on how to Calculate the variable overhead efficiency variance for June. ABC Company began operations on June
hi can you help me with an expalantion on how toCalculate thevariable overhead efficiency variancefor June.
ABC Company began operations on June 1, 2019. For its first month of operations, ABC Company established the following standards for unit of its single product: standard quantity standard price
direct materials 8 pounds $3.50 per pound direct labor 7 hours $15.00 per hour variable overhead 7 hours $7.50 per hour The following information is available for surge for the month of June: 1. 65,000 pounds of direct materials were purchased at a total cost of $188,500. 2. 45,000 direct labor hours were worked at a total cost of $731,250. 3. The variable overhead cost for the month totaled $325,000. 4. 6,500 units were produced. 5. At June 30, ABC Company had 8,000 pounds of direct materials on hand.
Calculate the variable overhead efficiency variance for June. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (i.e., 10,000 U). Quiz scores will not be adjusted for failing to follow these directions. Do not use decimals in your answer.
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