Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours. Presented is
Fantastic news! We've Found the answer you've been seeking!
Question:
Chelsea Fabricating applies variable overhead to products on the basis of standard direct labor hours. Presented is selected information for last month when 25,000 units were produced. Solve for Labor Rate/Variable overhead spending variance, and efficiency variances. | ||||
Direct labor | Variable overhead | |||
Actual | 306,000 | 192,500 | ||
Standard hours/unit | 0.5 | 0.5 | ||
Actual hours (total) | 12,000 | 12,000 | ||
Standard rate/hour | $ 25.00 | $ 15.00 | ||
Actual rate | $ 25.50 | |||
Flexible budget | $ 312,500 | $ 187,500 | ||
Labor rate or variable overhead spending variance | U | U | ||
Efficiency variances | F | F | ||
Total flexible budget variance | 6,500 | F | 5,000 | U |
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Posted Date: