Chapter 16, Problem 16.15E

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What is the variable overhead efficiency variance for the month?

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The company produced 6,200 units in May using 15,900 liters of direct material and 3,400 direct labor hours.

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Cosmic Technologies is evaluating a project that costs $2,500 and has no salvage value after 4 years. The project will produce a gadget that will sell for $155 per unit and incur variable costs of $120 per unit. The company has fixed costs of $4,200 and requires a 13% return on its projects. If Cosmic sells 240 units, what is the firm's degree of operating leverage?