Grass Pad's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product AB90 specifies 8.4 direct labor-hours per unit of AB90. The standard variable overhead rat is $5.60 per direct labor-hour. During the most recent month, 800 units of product AB90 were made and 6,800 direct labor-hours were worked. The actual variable overhead incurred was $41,140. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?

Grass Pad's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product AB90 specifies 8.4 direct labor-hours per unit of AB90. The standard variable overhead rat is $5.60 per direct labor-hour. During the most recent month, 800 units of product AB90 were made and 6,800 direct labor-hours were worked. The actual variable overhead incurred was $41,140. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?

Name: Grass Pad's variable overhead is applied on the basis of direct labor
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Description: Grass Pad's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product AB90 specifies 8.4 direct labor-hours per unit of AB90. The standard variable overhead rateis $5.60 per direct labor-hour. During the mos

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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