The following standards for variable overhead have been established for a company that makes only one product:
|
|
|
| Standard hours per unit of output |
6.0 |
hours |
| Standard variable overhead rate |
$14.00 |
per hour |
|
|
The following data pertain to operations for the last month:
|
|
|
|
| Actual hours |
9,500 |
hours |
| Actual total variable overhead cost |
$125,150 |
|
| Actual output |
1,570 |
units |
|
| Required: |
| a. |
What is the variable overhead rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|
| Variable overhead rate variance |
$ |
(Click to select)FUNone |
| b. |
What is the variable overhead efficiency variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|
| Variable overhead efficiency variance |
$ |
(Click to select)FUNone |