Question

Rip Tide Company manufactures surfboards. Its standard cost information follows.


Rip Tide has the following actual results for the month of June:
Number of units produced and sold ....... 312
Number of square feet of fiberglass used ..... 4,920
Cost of fiberglass used ........... $27,552
Number of labor hours worked ........ 3,060
Direct labor cost ............... $47,736
Variable overhead cost ........... $14,790
Fixed overhead cost ............ $24,600

Required:
Calculate the following variances for Rip Tide:
1. Variable overhead rate variance.
2. Variable overhead efficiency variance.
3. Total over or under-applied variable overhead.
4. Fixed overhead spending (budget) variance.
5. Fixed overhead volume variance.
6. Total over- or under-applied fixedoverhead.


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  • CreatedFebruary 27, 2015
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