A logistics company handles shipment processing for e-commerce sellers. The company applies variable overhead based on direct labor hours. According to records, 0.06 direct labor hours are required to process each shipment, and the variable overhead rate is $7.20 per direct labor hour. In September, the company processed 150,000 shipments using 9,200 direct labor hours. The company incurred a total of $66,240 in variable overhead costs. What was the variable overhead efficiency variance for September?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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A logistics company handles shipment processing for e-commerce sellers. The
company applies variable overhead based on direct labor hours. According to
records, 0.06 direct labor hours are required to process each shipment, and the
variable overhead rate is $7.20 per direct labor hour.
In September, the company processed 150,000 shipments using 9,200 direct
labor hours. The company incurred a total of $66,240 in variable overhead
costs.
What was the variable overhead efficiency variance for September?
Transcribed Image Text:A logistics company handles shipment processing for e-commerce sellers. The company applies variable overhead based on direct labor hours. According to records, 0.06 direct labor hours are required to process each shipment, and the variable overhead rate is $7.20 per direct labor hour. In September, the company processed 150,000 shipments using 9,200 direct labor hours. The company incurred a total of $66,240 in variable overhead costs. What was the variable overhead efficiency variance for September?
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