Design Architects, LLP, billed clients for 6,000 hours of design work for the month. Actual variable overhead
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Design Architects, LLP, billed clients for 6,000 hours of design work for the month. Actual variable overhead costs for the month were $315,000, and 6,250 hours were worked. At the beginning of the year, a variable overhead standard of $50 pre design hour had been developed based on a budget of 5,000 design hours each month. Calculate Design Architects’ variable overhead spending and efficiency variances for the month.
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