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Branch Corporation uses a standard cost system to account for the costs of its one product Variable overhead is applied using direct labor hours. Standards allowed for each unit are 3 hours of labor at a variable overhead rate of $10.00. During November, Branch Corporation produced 2,300 units. Payroll totaled $97,780 for 7,140 hours worked. Variable overhead incurred totaled $73,185. Required: a. Calculate the variable overhead rate variance Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the variable overhead efficiency variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the variable overhead spending variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).

Branch Corporation uses a standard cost system to account for the costs of its one product Variable overhead is applied using direct labor hours. Standards allowed for each unit are 3 hours of labor at a variable overhead rate of $10.00. During November, Branch Corporation produced 2,300 units. Payroll totaled $97,780 for 7,140 hours worked. Variable overhead incurred totaled $73,185. Required: a. Calculate the variable overhead rate variance Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the variable overhead efficiency variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the variable overhead spending variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Branch Corporation uses a standard cost system to account for the costs of its one product. Variable overhead is applied using direct labor hours. Standards allowed for each unit are 3 hours of labor at a variable overhead rate of $10.00. During November, Branch Corporation produced 2,300 units. Payroll totaled $97,780 for 7,140 hours worked. Variable overhead incurred totaled $73,185. Required: a. Calculate the variable overhead rate variance Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (.e., zero variance). b. Calculate the variable overhead efficiency variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the variable overhead spending variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). a. Rate Variance b. Efficiency Variance c. Spending Variance
Transcribed Image Text:Branch Corporation uses a standard cost system to account for the costs of its one product. Variable overhead is applied using direct labor hours. Standards allowed for each unit are 3 hours of labor at a variable overhead rate of $10.00. During November, Branch Corporation produced 2,300 units. Payroll totaled $97,780 for 7,140 hours worked. Variable overhead incurred totaled $73,185. Required: a. Calculate the variable overhead rate variance Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (.e., zero variance). b. Calculate the variable overhead efficiency variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the variable overhead spending variance. Note: Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance). a. Rate Variance b. Efficiency Variance c. Spending Variance
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