Voltura Electronics has reported the following performance for the current period: Category Fixed Overhead Budget Actual $130,000 $128,500 Units Produced 4,200 92,000 Direct Labor Hours 8,400 76,500 Additional Information: • • • • Fixed Overhead is applied at $10 per direct labor hour (DLH) Variable Overhead is applied at $24.00 per DLH Standard DLH per unit = 2 hours Actual Variable Overhead incurred = $1,790,000 What is the Variable Overhead Spending Variance?

Voltura Electronics has reported the following performance for the current period: Category Fixed Overhead Budget Actual $130,000 $128,500 Units Produced 4,200 92,000 Direct Labor Hours 8,400 76,500 Additional Information: • • • • Fixed Overhead is applied at $10 per direct labor hour (DLH) Variable Overhead is applied at $24.00 per DLH Standard DLH per unit = 2 hours Actual Variable Overhead incurred = $1,790,000 What is the Variable Overhead Spending Variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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