Accounting silmon corporation makers a product with the following standard costs: Silmon Corporation makes a product with the following standard costs:Standard Quantity or Hours Standard Price or RateDirect materials6.1 gramsDirect labor0.4 hours$7 per gram$14 per hour$2 per hourVariable overhead 0.4 hoursIn June the company produced 5,400 units using 34,190 grams of direct material and 2,700 directlabor hours. During the month the company purchased 25,300 grams of the direct material at a priceof $6.80 per gram. The actual direct labor rate was $14.60 per hour and the actual variable overheadrate was $1.90 per hour. The materials price variance is computed when materials are purchased.Variable overhead is applied on the basis of direct labor hours.Required:Compute the variable overhead efficiency variance.

Hello student! Variable Overhead Efficiency Variance (VOEV) shows the difference between the actual…

Answered: Silmon Corporation makes a product with…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Accounting silmon corporation makers a product with the following standard costs:

Silmon Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials
6.1 grams
Direct labor
0.4 hours
$7 per gram
$14 per hour
$2 per hour
Variable overhead 0.4 hours
In June the company produced 5,400 units using 34,190 grams of direct material and 2,700 direct
labor hours. During the month the company purchased 25,300 grams of the direct material at a price
of $6.80 per gram. The actual direct labor rate was $14.60 per hour and the actual variable overhead
rate was $1.90 per hour. The materials price variance is computed when materials are purchased.
Variable overhead is applied on the basis of direct labor hours.
Required:
Compute the variable overhead efficiency variance.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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