E9-13 (Algo) Calculating Variable Manufacturing Overhead Variances [LO 9-5] 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: Variable manufacturing overhead During August, LLL had the following actual results: Standard Quantity 0.6 Standard Rate $0.80 Standard Unit Cost $0.48 Units produced and sold Actual variable overhead Actual direct labor hours Required: 24,400 $ 9,430 15,400 Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. Note: 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). Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance
E9-13 (Algo) Calculating Variable Manufacturing Overhead Variances [LO 9-5] 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: Variable manufacturing overhead During August, LLL had the following actual results: Standard Quantity 0.6 Standard Rate $0.80 Standard Unit Cost $0.48 Units produced and sold Actual variable overhead Actual direct labor hours Required: 24,400 $ 9,430 15,400 Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. Note: 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). Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![E9-13 (Algo) Calculating Variable Manufacturing Overhead Variances [LO 9-5]
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:
Variable manufacturing overhead
During August, LLL had the following actual results:
Standard
Quantity
0.6
Standard Rate
$0.80
Standard
Unit Cost
$0.48
Units produced and sold
Actual variable overhead
Actual direct labor hours
Required:
24,400
$ 9,430
15,400
Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead.
Note: 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).
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6e0a7ea-2586-4849-a48f-336f0b431302%2Fd9d7edce-9c46-4a70-bee9-d0319fa39e48%2Fjv0i87_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E9-13 (Algo) Calculating Variable Manufacturing Overhead Variances [LO 9-5]
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:
Variable manufacturing overhead
During August, LLL had the following actual results:
Standard
Quantity
0.6
Standard Rate
$0.80
Standard
Unit Cost
$0.48
Units produced and sold
Actual variable overhead
Actual direct labor hours
Required:
24,400
$ 9,430
15,400
Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead.
Note: 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).
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance
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