Volte Corporation produces small electric appliances. The following information is available for the most recent period...

Transcribed Image Text:

Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate $ 2.80 per direct labor-hour Actual output 25,900 units 35,100 Actual direct labor-hours used Standard direct labor-hours Actual direct labor cost incurred Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,840 units Volte never has any work-in-process inventories and began the year with no finished goods inventory. 1.5 per unit $ $ 107,500 879,000 $ 34 Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate $ 2.80 per direct labor-hour Actual output 25,900 units 35,100 Actual direct labor-hours used Standard direct labor-hours Actual direct labor cost incurred Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,840 units Volte never has any work-in-process inventories and began the year with no finished goods inventory. 1.5 per unit $ $ 107,500 879,000 $ 34 Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances.

Answer rating: 100% (QA)

a To calculate the variable overhead price variance we need to compare the actual variable overhead rate per direct laborhour with the standard variab... View the full answer