A manufacturing company that has only one product has established the following standards for its variable manufacturing
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Question:
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
Standard hours per unit of output | 4.60 | direct labor-hours |
---|---|---|
Standard variable overhead rate | $11.55 | per direct labor-hour |
The following data pertain to operations for the last month:
Actual direct labor-hours | 8,500 | direct labor-hours |
---|---|---|
Actual total variable manufacturing overhead cost | $ 95,930 | |
Actual output | 1,700 | units |
What is the variable overhead rate variance for the month?
Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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