H&X Co. uses a standard job cost system with a normal capacity of 25,000 direct labour hours.

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H&X Co. uses a standard job cost system with a normal capacity of 25,000 direct labour hours. H&X Co. produces 12,000 units, which cost $185,700 for direct labour (23,000 hours), $27,525 for variable overhead, and $136,400 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10 (2 hours at $5 per hour).

Calculate the variable overhead spending variance and the variable overhead efficiency variance

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Managerial Accounting Tools for Business Decision Making

ISBN: 978-1118856994

4th Canadian edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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