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P3-uz Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals:
P3-uz Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals: direct materials direct labor variable overhead standard quantity 2 leather strips 2.5 hours 2.5 hours standard price ?? per strip $12 per hour ?? per hour During May, P3-uz purchased leather strips at a total cost of $124,250 and had direct labor totaling $154,760. During May, P3-uz used 16,300 leather strips in the production of sandals. P3-uz had no beginning inventories of any type for May. At May 31, P3-uz had 600 leather strips remaining in its direct materials inventory. P3-uz Company reported the following variances for May: Direct material price variance Direct labor rate variance Total direct labor variance Variable overhead spending variance Variable overhead efficiency variance $40,525 favorable $27,560 unfavorable $37,240 favorable $ 9,280 unfavorable $60,480 favorable Calculate the actual variable overhead cost incurred by P3-UZ Company in May
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