Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 7.0 direct labor-hours per unit of D80D. The standard variable overhead rate is $7.30 per direct labor-hour. During the most recent month, 1,000 units of product D80D were made and 7,100 direct labor-hours were worked. The actual variable overhead incurred was $56,810. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance b. Variable overhead efficiency variance Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 7.0 direct labor-hours per unit of D80D. The standard variable overhead rate is $7.30 per direct labor-hour. During the most recent month, 1,000 units of product D80D were made and 7,100 direct labor-hours were worked. The actual variable overhead incurred was $56,810. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance b. Variable overhead efficiency variance
Expert Answer:
Answer rating: 100% (QA)
a Variable Overhead Rate Variance The variable overhead rate variance is calculated as the differenc... View the full answer
Posted Date:
Students also viewed these accounting questions
-
VisAudioTech Corporation commenced operations thirty years ago in the competitive entertainment technology industry, producing custom made remote controls for videos. A few years ago, VisAudioTech...
-
In the financial market, what causes a movement along the demand curve? What causes a shift in the demand curve?
-
Suppose the U.S. government imposes a $1 per gallon of milk tax on dairy farmers. Using the demand and supply equations from question 1: a. What is the effect of the tax on the supply equation? The...
-
You are given the following data on two companies, M and N (figures are millions): Required: a. Which company has the higher profit margin? b. Which company has the higher investment turnover? c....
-
Why is it necessary for the auditor to make tests of the client's inventory counts?
-
At the beginning of 2012, Mazzaro Company acquired equipment costing $120,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $12,000 at that time....
-
What advice would you give an incoming CEO? In 2005, what did Advent International and Highland Capital see in lululemon? How important is lululemon's culture? Why was Bob Meers hired I 2005? What...
-
You are the newly hired Ethics Advisor for your Virtual Organization. Your major competitor just had a public ethical dilemma. You want to prevent your virtual organization from encountering...
-
Company A is a grocery store competing on low cost. Company B is a consulting services company that hires only Harvard and Stanford MBAs who also have at least 10 years work experience. Given only...
-
Which of the IOM recommendations do you feel provides the greatest impact on patient safety? Why? Assess the US healthcare system's actions regarding the four recommendations in the IOM report....
-
Sunburst Bakeries is a supplier of all kinds of bread and cakes to leading Australian supermarkets. It has several huge factories, each specializing in the production of a limited range of goods. For...
-
1. How does mitigation planning improve a community's resiliency? How can risk assessments be used to promote resiliency? Considering the articles you have read on this topic, what are important...
-
What are some of your everyday activities that require the use of business communications? - What is likely to happen if a business does not communicate effectively with its customers? - Why does...
-
Summarize the orange book (tcsec) succinctly and give an example illustration (eg, a real system) of the four levels of protection. From computer security basics textbook by rick lehtinen, deborah...
-
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...
-
What is a keiretsu?
-
Regional trading blocs, such as the EU and NAFTA, are growing in importance. What are the implications of these trading blocs for international businesses? Are they helpful or harmful? How may they...
-
Discuss the role of natural resources and agriculture in Africas economy.
Study smarter with the SolutionInn App