Phan Company provided the following information: Standard variable overhead rate (SVOR) per direct labour hour ...................$3.70 Actual
Question:
Phan Company provided the following information:
Standard variable overhead rate (SVOR) per direct labour hour ...................$3.70
Actual variable overhead rate (AVOR) per direct labour hour .....................$3.68
Actual direct labour hours worked (AH) .............................................$6,200
Actual production in units ...............................................................14,000
Standard hours allowed for actual units produced (SH) .............................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
Step by Step Answer:
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman