Question
The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.9 hours
The following standards for variable overhead have been established for a company that makes only one product: |
Standard hours per unit of output | 6.9 | hours |
Standard variable overhead rate | $14.00 | per hour |
|
The following data pertain to operations for the last month: |
Actual hours | 9,400 | hours |
Actual total variable overhead cost | $125,240 | |
Actual output | 1,350 | units |
Required: | |
a. | What is the variable overhead rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) |
b. | What is the variable overhead efficiency variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) |
Variable overhead rate variance
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