Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | 26,000 |
---|---|
Actual variable overhead | $ 9,560 |
Actual direct labor hours | 16,700 |
Required:
Compute LLLs variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead.
Note: Do not round intermediate calculations. Indicate the effect of ea
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started