Question
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLLs standard cost card follows: Standard
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLLs standard cost card follows: |
| Standard Quantity | Standard Rate | Standard Unit Cost |
Variable manufacturing overhead | 0.6 | $0.80 | $0.48 |
During August, LLL had the following actual results: |
|
|
|
Units produced and sold |
| 25,200 |
Actual variable overhead | $ | 9,510 |
Actual direct labor hours |
| 16,200 |
Required: |
Compute LLLs variable overhead rate variance, variable overhead efficiency variance, and over or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.) |
|
|
|
Variable Overhead Rate Variance | $ |
|
Variable Overhead Efficiency Variance | $ |
|
Variable Overhead Spending Variance | $ |
|
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