Nova Tools Inc. uses the following standards for variable overhead: Standard hours per unit of output = 5.5 hours Standard variable overhead rate = $12/hour Last month's data: • Actual hours = 8,300 hours Actual total variable overhead cost = $101,430 Actual output = 1,500 units Required: A. Calculate the variable overhead rate variance B. Calculate the variable overhead efficiency variance

Nova Tools Inc. uses the following standards for variable overhead: Standard hours per unit of output = 5.5 hours Standard variable overhead rate = $12/hour Last month's data: • Actual hours = 8,300 hours Actual total variable overhead cost = $101,430 Actual output = 1,500 units Required: A. Calculate the variable overhead rate variance B. Calculate the variable overhead efficiency variance

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10EA: ThingOne Company has the following information available for the past year. They use machine hours...

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A company sets the following standards for its variable overhead: • Standard hours per unit: 5.0 hours Standard variable overhead rate: $12 per hour Last month's data: • Actual hours worked: 11,500 hours . Actual variable overhead cost: $134,800 • Actual production: 2,200 units A. What is the variable overhead rate variance? B. What is the variable overhead efficiency variance?
Given on the following information, calculate the variable overhead rate variance. Actual variable overhead cost $15,500; Actual hours used 4,200, Standard hours allowed 4,000; and Standard variable overhead rate $3.75 per hour. O $500 F O $250 U O $250 F O $500 U Î
Calculate the actual variable overhead
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A company reports the following Information for its direct labor. Actual hours of direct labor used Actual rate of direct labor per hour Standard rate of direct labor per hour Standard hours of direct labor for units produced AH = Actual Hours SH - Standard Hours AR = Actual Rate SR Standard Rate = 59,000 $ 16 $ 14 60,100 Compute the direct labor rate and efficiency variances and Identify each as favorable or unfavorable. Actual Cost Standard Cost
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Actual variable overhead rate
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