Reddy Corporation has collected the following data for the month of June: Actual total factory overhead incurred $61,200 Budgeted fixed factory overhead costs $42,280 Activity level, in direct labor hours 15,100 Actual direct labor hours 18,200 Standard hours for output this period 16,900 Total factory overhead rate $4.40 What is the variable overhead efficiency variance? Enter the amount as positive number. Variable overhead efficiency variance $fill in the blank 1
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Reddy Corporation has collected the following data for the month of June:
| Actual total factory overhead incurred | $61,200 |
| Budgeted fixed |
$42,280 |
| Activity level, in direct labor hours | 15,100 |
| Actual direct labor hours | 18,200 |
| Standard hours for output this period | 16,900 |
| Total factory overhead rate | $4.40 |
What is the variable overhead efficiency variance? Enter the amount as positive number.
| Variable overhead efficiency variance | $fill in the blank 1 |
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