The Beverly Company has determined a standard variable overhead rate of $1.50 per direct labor hour and
Fantastic news! We've Found the answer you've been seeking!
Question:
The Beverly Company has determined a standard variable overhead rate of $1.50 per direct labor hour and expects to incur 1.0 labor hours per unit produced. Last month, Beverly incurred 1,000 actual direct labor hours in the production of 1,100 units. The company has also determined that its actual variable overhead rate is $1.45 per direct labor hour.
Required:
Calculate the variable overhead rate and efficiency variances, also indicate whether the variables are favorable or unfavorable, the total amount of variable overhead costs over or under applied.
|
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date: