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 Standard Standard Standard Quantity Rate Unit Cost 0.6 $0.80 $0.48 During August, LLL had the following actual results: 24,000 Units produced and sold Actual variable overhead $ 9.390 Actual direct labor hours 15,000 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).) Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance U

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Chapter1: Financial Statements And Business Decisions
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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:
Variable manufacturing
overhead
Standard Standard Standard
Quantity Rate Unit Cost
0.6 $0.80
During August, LLL had the following actual results:
24,000
$9,390
Units produced and sold
Actual variable overhead
Actual direct labor hours 15,000
$0.48
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).)
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance
U
Transcribed Image Text: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 Standard Standard Standard Quantity Rate Unit Cost 0.6 $0.80 During August, LLL had the following actual results: 24,000 $9,390 Units produced and sold Actual variable overhead Actual direct labor hours 15,000 $0.48 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).) Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance U
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