Question
Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,500 Standard direct labor hours per unit 0.2
Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,500 Standard direct labor hours per unit 0.2 Standard variable overhead rate (per direct labor hour) $3.40 Actual variable overhead costs $88,650 Actual hours worked 26,600 Required: 1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.) $ 2. Calculate the variable overhead efficiency variance using the formula approach. $ 3. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? What impact would that have had on the variable overhead efficiency variance?
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