Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Rate per Hour 15 minutes $15 per hour Standard Hours The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $19,925 in variable manufacturing overhead costs. During the current month, 5,114 direct labor hours were needed to manufacture 18,942 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 Rate per Hour 15 minutes $15 per hour Standard Hours The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $19,925 in variable manufacturing overhead costs. During the current month, 5,114 direct labor hours were needed to manufacture 18,942 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
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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
Rate per
Hour
15 minutes $15 per hour
Standard
Hours
The budgeted variable overhead rate is $5 per direct labor hour. During the current
month, the company incurred $19,925 in variable manufacturing overhead costs.
During the current month, 5,114 direct labor hours were needed to manufacture
18,942 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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