Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour $4.70 Actual
Question:
Aretha Company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour | | $4.70 | |
Actual variable overhead costs | | $335,750 | |
Actual direct labor hours worked (AH) | | 69,200 | |
Actual production in units | | 14,000 | |
Standard hours (SH) allowed for actual units produced | | 70,000 | |
Required:
1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable (F) or Unfavorable (U).
2. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number and select Favorable or Unfavorable.
3. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number and select Favorable or Unfavorable.
4. Calculate the total variable overhead variance. Enter amount as a positive number and select Favorable or Unfavorable.
Managerial Accounting The Cornerstone of Business Decision Making
ISBN: 978-1337115773
7th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger