Question
Sunland Co. uses a standard job cost system with a normal capacity of 26,500 direct labour hours. Sunland Co. produces 12,800 units, which cost
Sunland Co. uses a standard job cost system with a normal capacity of 26,500 direct labour hours. Sunland Co. produces 12,800 units, which cost $170,100 for direct labour (24,300 hours), $25,600 for variable overhead, and $137,600 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10.10 (2 hours at $5.05 per hour). Calculate the variable overhead spending variance and the variable overhead efficiency variance. Variable overhead spending variance Variable overhead efficiency variance $
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