Beverly Company has determined a standard variable overhead rate of $3.75 per direct labor hour and expects to incur 1.0 labor hour per unit produced. Last month, Beverly incurred 1,180 actual direct labor hours in the production of 1,280 units. The company has also determined that its actual variable overhead rate is $3.70 per direct labor hour. Calculate the variable overhead rate and efficiency variances also indicate if the variable are favorable or unfavorable the total amount of over- or underapplied variable overhead. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Variable Overhead Rate Variance F Variable Overhead Efficiency Variance Overapplied Over- or Underapplied Variable Overhead

Beverly Company has determined a standard variable overhead rate of $3.75 per direct labor hour and expects to incur 1.0 labor hour per unit produced. Last month, Beverly incurred 1,180 actual direct labor hours in the production of 1,280 units. The company has also determined that its actual variable overhead rate is $3.70 per direct labor hour. Calculate the variable overhead rate and efficiency variances also indicate if the variable are favorable or unfavorable the total amount of over- or underapplied variable overhead. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Variable Overhead Rate Variance F Variable Overhead Efficiency Variance Overapplied Over- or Underapplied Variable Overhead

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...

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The following information pertains to Blue Lion Co's 202x manufacturingoperations: Standard direct labor hours/unit is 2; Actual direct labor hours is 10,500; Number of units produced is 5,000; standard variable OH/ Hr is P3 and Actual variable OH is P28,000. The company's variable overhead efficiency variance must be:
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