The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration:

Budgeted production $5,000$ drills

Standard machine$-$hours per drill $10\mathrm{.}3$ machine$-$hours

Standard indirect labor $ $10\mathrm{.}10$ per machine$-$hour

Standard power $ $3\mathrm{.}70$ per machine$-$hour

Actual production $5,200$ drills

Actual machine$-$hours $36,650$ machine$-$hours

Actual indirect labor $ $372,823$

Actual power $ $134,250$

Required:

Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable $($F$)$ or unfavorable $($U$).$

Note: 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.

Answer rating: 100% (QA)

First lets compute the standard variable overhead rates per machine hour for indirect labor and powe... View the full answer