The following standards for variable overhead have been established for a company that makes only one product:Standard hours per unit of outputStandard variable overhead rateThe following data pertain to operations for the last month:Actual hours.Actual total variable overhead costActual output6.2 hours$13.50 per hour9,700 hours$ 125,1701,550 unitsRequired:a. What is the variable overhead rate variance for the month?b. What is the variable overhead efficiency variance for the month?(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.)

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Description: The following standards for variable overhead have been established for a company that makes only one product:Standard hours per unit of outputStandard variable overhead rateThe following data pertain to operations for the last month:Actual hours.Ac

The term "variable overhead efficiency variance" refers to both the impact of the discrepancy…

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The following standards for variable overhead have been established for a company that makes only one product Standard hours per unit of output Standard variable overhead rate 6.2 hours $13.50 per hour The following data pertain to operations for the last month: Actual hours Actual total variable overhead cost Actual output 9,700 hours $ 125,170 1,550 units Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month? (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.)

The following standards for variable overhead have been established for a company that makes only one product Standard hours per unit of output Standard variable overhead rate 6.2 hours $13.50 per hour The following data pertain to operations for the last month: Actual hours Actual total variable overhead cost Actual output 9,700 hours $ 125,170 1,550 units Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month? (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.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
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