Dao Ming Si group makes a tea product that is exclusive to high end hotels. They used a standard costing system and provides the following information: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.3 hours $ 14.00 per hour $ 4.20 Variable overhead 0.3 hours $ 5.00 per hour $ 1.50 In April the company had a production
Dao Ming Si group makes a tea product that is exclusive to high end hotels. They used a
|
|
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost Per Unit |
||||||
|
Direct labor |
|
0.3 |
hours |
$ |
14.00 |
per hour |
$ |
4.20 |
|
|
Variable |
|
0.3 |
hours |
$ |
5.00 |
per hour |
$ |
1.50 |
|
In April the company had a production budget of 5,300 units, but the actual production was 5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable overhead cost was $7,590. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead efficiency variance for April is:
Question 8 options:
|
$600 Unfavorable |
|
|
$552 Favorable |
|
|
$600 Favorable |
|
|
$552 Unfavorable |
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