The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output: 5.5 hours Standard variable overhead rate: $15 per hour The following data pertains to operations for the last month: • . Actual hours: 8,000 hours Actual total variable overhead cost: $120,000 Actual output: 1,400 units Required: 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 for a company that makes only one product: Standard hours per unit of output: 5.5 hours Standard variable overhead rate: $15 per hour The following data pertains to operations for the last month: • . Actual hours: 8,000 hours Actual total variable overhead cost: $120,000 Actual output: 1,400 units Required: 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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