Question: Rip Tide Company manufactures surfboards Its standard cost information follows

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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