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ooo T-Mobile 3:36 PM platform2.mybusinesscourse.com 6 Variable overhead variances Assume that the best cost driver that Sony has for variable factory overhead in the assembly
ooo T-Mobile 3:36 PM platform2.mybusinesscourse.com 6 Variable overhead variances Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6, 200,000, which was related to 600,000 machine hours. (Round your answers to the nearest dollar. Do not round until your final answers.) Determine the variable overhead spending variance. Determine the variable overhead efficiency variance. Determining Unit Costs, Variance Analysis, 2100 and Interpretation Flag question Big Dog Company, a manufacturer of dog food, produces its product in 1,000 bag batches. The standard cost of each batch consists of 11,000 pounds of direct materials at $0.40 per pound, 50 direct labor hours at $8.50 per hour, and variable overhead cost (based on machine hours) at the rate of$10 per hour with 16 machine hours per batch. The following variable costs were incurred for the last 1,000-bag batch produced ,300 po ng $4,378 $225 8 h (a) Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead. dard C (b) For the last 1,000-bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead als pri Laba Labor effi head spending varia (c) Which of the following is the most likely explanation for an unfavorable labor rate variance and a favorable labor efficiency variance? of poor quality materials resulting in overtime labor.U of low efficiency equipment by highly skilled employees. O Use of higher skilled employees and high efficiency equipment. O Use of high efficiency equipment by undertrained employees Support
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