The following standards for variable manufacturing overhead have been established for Crane, Inc. a manufacturer of reproduction vintage hats. Standard hours per unit 2.50 hours Standard variable overhead rate $11.80 per direct labor hour The following data pertain to operations for the month of July. Actual direct labor hours 10,300 Actual total variable overhead cost $99,000 Actual production 4,200 units Calculate the variable overhead spending variance and the variable overhead efficiency variance for July and indicate whether the variances are favorable or unfavorable. Variable overhead spending variance $ Variable overhead efficiency variance $
The following standards for variable manufacturing overhead have been established for Crane, Inc. a manufacturer of reproduction vintage hats. Standard hours per unit 2.50 hours Standard variable overhead rate $11.80 per direct labor hour The following data pertain to operations for the month of July. Actual direct labor hours 10,300 Actual total variable overhead cost $99,000 Actual production 4,200 units Calculate the variable overhead spending variance and the variable overhead efficiency variance for July and indicate whether the variances are favorable or unfavorable. Variable overhead spending variance $ Variable overhead efficiency variance $
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The following standards for variable manufacturing overhead have been established for Crane, Inc. a manufacturer of reproduction vintage hats.
Standard hours per unit
2.50 hours
Standard variable overhead rate $11.80 per direct labor hour
The following data pertain to operations for the month of July.
Actual direct labor hours
10,300
Actual total variable overhead cost
$99,000
Actual production
4,200 units
Calculate the variable overhead spending variance and the variable overhead efficiency variance for July and indicate whether the variances are favorable or unfavorable.
Variable overhead spending variance
$
Variable overhead efficiency variance
$
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