Variable Overhead Variances

Morgan Tax Company considers $6,000$ direct labor hours or $300$ tax returns its normal monthly capacity. Its standard variable overhead rate is $$13$ per direct labor hour. During the current month, $$65,400$ of variable overhead cost was incurred in working $5,600$ direct labor hours to prepare $270$ tax returns. Determine the following variances, and indicate whether each is favorable or unfavorable:

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either $"$F$"$ for Favorable or $"$U$"$ for Unfavorable.

Variable Overhead Variances

Actual cost: Answer $1$

Split cost: Answer $2$

Standard cost: Answer $3$

a$.$ Variable overhead spending Answer $4$

Answer $5$

F

b$.$ Variable overhead efficiency Answer $6$

Answer $7$

UVariable Overhead Variances returns. Determine the following variances, and indicate whether each is favorable or unfavorable:

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either $"$F$"$ for Favorable or $"$U$"$ for Unfavorable.

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