Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Hours 15 minutes Standard Rate per Hour $15 per hour The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $21,987 in variable manufacturing overhead costs. During the current month, 4,923 direct labor hours were needed to manufacture 19,475 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead efficiency variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Hours 15 minutes Standard Rate per Hour $15 per hour The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $21,987 in variable manufacturing overhead costs. During the current month, 4,923 direct labor hours were needed to manufacture 19,475 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead efficiency variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
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![Augusta Sports manufactures baseball caps. The company uses standards to control
costs. The labor standards for one baseball cap are as follows:
Standard Hours
15 minutes
Standard Rate
per Hour
$15 per hour
The budgeted variable overhead rate is $5 per direct labor hour. During the current
month, the company incurred $21,987 in variable manufacturing overhead costs. During
the current month, 4,923 direct labor hours were needed to manufacture 19,475
baseball caps. Direct labor costs totaled $102,000 for the month.
Compute the variable overhead efficiency variance.
Enter a favorable variance as a positive number. Enter an unfavorable variance as a
negative number.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82469b80-1cf8-4e6c-a988-89cb397843aa%2F7b55ce1c-15f4-49dc-ac09-cbcbf3271399%2F40hx6sk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Augusta Sports manufactures baseball caps. The company uses standards to control
costs. The labor standards for one baseball cap are as follows:
Standard Hours
15 minutes
Standard Rate
per Hour
$15 per hour
The budgeted variable overhead rate is $5 per direct labor hour. During the current
month, the company incurred $21,987 in variable manufacturing overhead costs. During
the current month, 4,923 direct labor hours were needed to manufacture 19,475
baseball caps. Direct labor costs totaled $102,000 for the month.
Compute the variable overhead efficiency variance.
Enter a favorable variance as a positive number. Enter an unfavorable variance as a
negative number.
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