The Litton Company has established standards as follows:Direct MaterialDirect Labour3 kgs. @ $4/kg. = $12 per unit2 hrs. @ $8/hr. = $16 per unit2 hrs. @ $5/hr. = $10 per unit%3!Variable Manufacturing OverheadActual production figures for the past year are given below.Units ProducedDirect Material UsedDirect Material Purcahsed (3,000 kgs.)6002,000 kgs.$11,400Direct Labour Cost (1,100 hrs.)Variable Manufacturing Overhead Cost Incurred$9,240$5,720The company applies variable manufacturing overhead to products on the basis of direct labourhours.What is the variable overhead efficiency variance?

Name: The Litton Company has established standards as follows:Direct Materi
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Description: The Litton Company has established standards as follows:Direct MaterialDirect Labour3 kgs. @ $4/kg. = $12 per unit2 hrs. @ $8/hr. = $16 per unit2 hrs. @ $5/hr. = $10 per unit%3!Variable Manufacturing OverheadActual production figures for the past ye

Answered: The company applies variable…

Business

Accounting

The company applies variable manufacturing overhead to products on the basis of direct labour hours. What is the variable overhead efficiency variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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