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 $21,747 in variable manufacturing overhead costs. During the current month, 4,997 direct labor hours were needed to manufacture 20,198 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead spending 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 $21,747 in variable manufacturing overhead costs. During the current month, 4,997 direct labor hours were needed to manufacture 20,198 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead spending variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $21,747 in variable manufacturing overhead costs. During
the current month, 4,997 direct labor hours were needed to manufacture 20,198
baseball caps. Direct labor costs totaled $102,000 for the month.
Compute the variable overhead spending 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%2F8ea36428-bfd1-4229-8ca7-8dbebf3c22dd%2Fb997bdf1-0f21-4f23-ab66-357d9d547c93%2Fg3wrsn_processed.png&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 $21,747 in variable manufacturing overhead costs. During
the current month, 4,997 direct labor hours were needed to manufacture 20,198
baseball caps. Direct labor costs totaled $102,000 for the month.
Compute the variable overhead spending variance.
Enter a favorable variance as a positive number. Enter an unfavorable variance as a
negative number.
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