Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead of $6.60 (2 hrs. per unit @ $3.30/hr.). Actual data for the month show a variable overhead costs of $166,680 and 24,300 units produced. The total variable overhead variance is: A. $6,300F B. $6,300U C. $86,490U D. $86,490F E. $0.

Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead of $6.60 (2 hrs. per unit @ $3.30/hr.). Actual data for the month show a variable overhead costs of $166,680 and 24,300 units produced. The total variable overhead variance is: A. $6,300F B. $6,300U C. $86,490U D. $86,490F E. $0.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?
Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The standard variable manufacturing overhead (M0H) rate used by the company is $6.75 per machine hour. Each sewing machine requires 13.5 machine hours. Actual machine hours used last month were 33,500, and the actual variable MOH rate last month was $7.00. Calculate the variable overhead rate variance and the variable overhead efficiency variance.
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ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
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