Question
The Stallard Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Stallard produced 15,700 units of Product X
The Stallard Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Stallard produced 15,700 units of Product X and incurred actual variable overhead costs of $285,000. The standard costs developed for Product X by Stallard follow:
Standard direct labor hours per unit | 3 |
Standard direct labor rate per hour | $15.00 |
Standard variable overhead hours per unit | 10 |
Standard variable overhead rate per hour | $7.80 |
What was the total variable overhead variance for Product X in October?
Correct Answer: $939,600 favorable
Please explain how to get this correct answer. Show all your work please!!
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