E23-11 Manufacturing overhead data for the production of Product H by Shakira Com- pany are as follows. Overhead incurred for 52,000 actual direct labor hours worked Overhead rate (variable $3; fixed $2) at normal capacity of 54,000 direct labor hours Standard hours allowed for work done $263,000 $5 52,000 Instructions Compute the total overhead variance.

E23-11 Manufacturing overhead data for the production of Product H by Shakira Com- pany are as follows. Overhead incurred for 52,000 actual direct labor hours worked Overhead rate (variable $3; fixed $2) at normal capacity of 54,000 direct labor hours Standard hours allowed for work done $263,000 $5 52,000 Instructions Compute the total overhead variance.

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Description: E23-11 Manufacturing overhead data for the production of Product H by Shakira Com-pany are as follows.Overhead incurred for 52,000 actual direct labor hours workedOverhead rate (variable $3; fixed $2) at normal capacity of 54,000direct labor hoursSt

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

E23-11 Manufacturing overhead data for the production of Product H by Shakira Com-
pany are as follows.
Overhead incurred for 52,000 actual direct labor hours worked
Overhead rate (variable $3; fixed $2) at normal capacity of 54,000
direct labor hours
Standard hours allowed for work done
$263,000
$5
52,000
Instructions
Compute the total overhead variance.

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Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL’s standard cost card follows: Standard Quantity Standard Rate Standard Unit Cost Variable manufacturing overhead 0.6 $0.80 $0.48 During August, LLL had the following actual results: Units produced and sold 26,300 Actual variable overhead $ 9,590 Actual direct labor hours 17,000 Required:Compute LLL’s variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) How do I figure out the variable overhead rate variance? I thought it's AH*(SR-AR) 17,000 * (.80- 9,590/17000=.56) 17000 * (.80-.56)= 4,080?? It says not correct?
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answer must be in table format or i will give down vote