A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 7.2 direct labor-hours Standard variable overhead rate $14.20 per direct labor-hour The following data pertain to operations for the last month: Actual direct labor-hours 5,100 direct labor-hours Actual total variable manufacturing overhead cost $ 72,165 Actual output 600 units What is the variable overhead rate variance for the month?

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 7.2 direct labor-hours Standard variable overhead rate $14.20 per direct labor-hour The following data pertain to operations for the last month: Actual direct labor-hours 5,100 direct labor-hours Actual total variable manufacturing overhead cost $ 72,165 Actual output 600 units What is the variable overhead rate variance for the month?

Name: A manufacturing company that has only one product has established the
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Description: A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variablemanufacturing overhead standards on direct labor-hours.Standard hours per unit of output

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...

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