The following standards for variable overhead have been established for a company that makes only one product: | Standard hours per unit of output | 7 hours | | Standard variable overhead rate | $14 per hour | The following data pertain to operations for the last month: | Actual hours | 10,200 hours | | Actual total variable overhead cost $142,800 | | Actual output | 1,500 units | Required: A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?

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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At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?
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A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent period, it actually used $76 of variable overhead per unit produced. During this same period, the company planned to produce 500 units but actually produced 540 units. What is the variable overhead spending variance?
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?
What is the variable overhead rate variance?
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