What is the variable overhead spending variance for the product for November?
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8EA: Queen Industries uses a standard costing system in the manufacturing of its single product. It...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Question 5
Apple Corporation produces a single product. The standard costs for one unit of its product are as follows:
Direct materials (6 pounds at $0.50 per pound)
$3
Direct labor (2 hours at $10 per hour)
Variable manufacturing overhead (2 hours at $5 per hour)
10
During November, 6,000 units were produced. The costs associated with November operations were as follows:
Material purchased (36,000 pounds at $0.60 per pound)
$21,600
Material used in production (28,000 pounds)
Direct labor (12,800 hours at $9.75 per hour)
117,000
Variable manufacturing overhead incurred
53,760
What is the variable overhead spending variance for the product for November?
O $6,240 Unfavorable
$ 10,240 Favorable
O $ 10,240 Unfavorable
O $6,240 Favorable
20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4409cd4a-e7bb-49c1-b4ac-ab44c42a2f35%2F0216fdf3-6f42-449e-9b18-1b8c8cf2ec11%2Ftoil6q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 5
Apple Corporation produces a single product. The standard costs for one unit of its product are as follows:
Direct materials (6 pounds at $0.50 per pound)
$3
Direct labor (2 hours at $10 per hour)
Variable manufacturing overhead (2 hours at $5 per hour)
10
During November, 6,000 units were produced. The costs associated with November operations were as follows:
Material purchased (36,000 pounds at $0.60 per pound)
$21,600
Material used in production (28,000 pounds)
Direct labor (12,800 hours at $9.75 per hour)
117,000
Variable manufacturing overhead incurred
53,760
What is the variable overhead spending variance for the product for November?
O $6,240 Unfavorable
$ 10,240 Favorable
O $ 10,240 Unfavorable
O $6,240 Favorable
20
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