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Novak Company has gathered the following information: Variable manufacturing overhead costs $13,680 Fixed manufacturing overhead costs $10,710 Normal production level in labour hours 9,000 Standard
Novak Company has gathered the following information: Variable manufacturing overhead costs $13,680 Fixed manufacturing overhead costs $10,710 Normal production level in labour hours 9,000 Standard labour hours 9,500 During the year, 3,050 units were produced, 10,900 hours were worked, and the actual manufacturing overhead was $21,800. Actual fixed overhead totalled $10,800. Novak applies overhead based on direct labour hours
- Calculate the variable overhead price variance
- Calculate the variable overhead efficiency variance
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