Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour ........$3.70 Actual
Question:
Standard variable overhead rate (SVOR) per direct labor hour ........$3.70
Actual variable overhead costs .........................................$206,816
Actual direct labor hours worked (AH) ..................................56,200
Actual production in units .................................................14,000
Standard hours (SH) allowed for actual units produced ...............56,000
Required:
1. Using the columnar approach, calculate the variable overhead spending and efficiency variances.
2. Using the formula approach, calculate the variable overhead spending variance.
3. Using the formula approach, calculate the variable overhead efficiency variance.
4. Calculate the total variable overhead variance.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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