Beverly Company has determined a standard variable overhead rate of $3.90 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,650 actual direct labor hours in the production of 3,400 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour.  Calculate the variable overhead rate and effeciency variances as well as the total amount of over-or underapplied variable overhead. . Variable Overhead Rate Variance=2,475 Favorable Variable Overhead Effeciency Variance=195 Favorable Variable Overhead Cost Variance?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Beverly Company has determined a standard variable overhead rate of $3.90 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,650 actual direct labor hours in the production of 3,400 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. 

Calculate the variable overhead rate and effeciency variances as well as the total amount of over-or underapplied variable overhead. .

Variable Overhead Rate Variance=2,475 Favorable

Variable Overhead Effeciency Variance=195 Favorable

Variable Overhead Cost Variance?

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