Question
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Rath Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour
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Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches
Rath Company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour $3.75 Actual variable overhead costs $222,816 Actual direct labor hours worked (AH) 57,200 Actual production in units 15,000 Standard hours (SH) allowed for actual units produced 60,000 Required:
1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers.
(1) (2) (3) Spending Efficiency 2. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number.
favorable or unfavorable?
$
3. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number.
favorable or unfavorable?
$
4. Calculate the total variable overhead variance. Enter amount as a positive number. favorable or unfavorable?
$
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