The following standards for variable overhead have been established by a company that produces a single product: • • Standard direct labor hours per unit: 5.5 hours Standard variable overhead rate: $12 per hour The company's actual performance last month: • Actual hours worked: 8,700 hours • Actual output: 1,550 units • Actual total variable overhead cost: $104,400 A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?

The following standards for variable overhead have been established by a company that produces a single product: • • Standard direct labor hours per unit: 5.5 hours Standard variable overhead rate: $12 per hour The company's actual performance last month: • Actual hours worked: 8,700 hours • Actual output: 1,550 units • Actual total variable overhead cost: $104,400 A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?

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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