The following standards for variable overhead have been established for a manufacturing company: Standard hours per unit of output: 2.5 hours Standard variable overhead rate: $14 per hour The following data pertain to operations for the last month: Actual hours: 6,300 hours Actual total variable overhead cost: $89,000 Actual output: 2,400 units What is the variable overhead efficiency variance for the month?

The following standards for variable overhead have been established for a manufacturing company: Standard hours per unit of output: 2.5 hours Standard variable overhead rate: $14 per hour The following data pertain to operations for the last month: Actual hours: 6,300 hours Actual total variable overhead cost: $89,000 Actual output: 2,400 units 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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