Desue Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.1 hours $19.00 per hour $1.90 Variable overhead 0.1 hours $7.00 per hour $0.70 The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for December is:
Desue Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.1 hours $19.00 per hour $1.90 Variable overhead 0.1 hours $7.00 per hour $0.70 The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for December is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Desue Corporation makes a product with the following standards for labor and variable
| Standard Quantity or Hours | Standard Price or Rate | ||
| Direct labor | 0.1 hours | $19.00 per hour | $1.90 |
| Variable overhead | 0.1 hours | $7.00 per hour | $0.70 |
The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead rate variance for December is:
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