A manufacturing company that has only one product has established the following standards for its variable...

Question

Question

A manufacturing company that has only one product has established the following standards for its variable...

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	4.10 direct labor-hours
Standard variable overhead rate	$11.45 per direct labor-hour

The following data pertain to operations for the last month:

Actual direct labor-hours	8,500 direct labor-hours
Actual total variable manufacturing overhead cost	$ 95,870
Actual output	2,000 units

What is the variable overhead efficiency variance for the month?

Multiple Choice

$2,652 Unfavorable
$3,435 Unfavorable
$7,133 Unfavorable
$7,133 Favorable

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer:

Variable Overhead efficiency variance
              =   (Standard direct labor-hours (-) Actual direct labor-hours ) x Standard Rate
              =   ( 2,000 x $ 4.10 DLH )    (-) 8,500 ) x $ 11.45
              =     ( 8,200 (-) 8,500 ) x $ 11.45
              =   $ 3,435 ( Unfavorable )

Option (b) is Correct

Add a comment

Answer 2

Similar Homework Help Questions

A manufacturing company that has only one product has established the following standards for its variable...

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 5.00 DLHs Standard variable overhead rate $ 11.63 per DLH The following data pertain to operations for the last month: Actual direct labor-hours 8,500 DLHs Actual total variable manufacturing overhead cost $ 95,970 Actual output 1,600 units What is the variable overhead efficiency variance for...
A manufacturing company that has only one product has established the following standards for its variable...

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 3.90 DLHs Standard variable overhead rate $ 11.25 per DLH The following data pertain to operations for the last month: Actual direct labor-hours 8,800 DLHs Actual total variable manufacturing overhead cost $ 95,850 Actual output 2,200 units What is the variable overhead efficiency variance for...
A manufacturing company that has only one product has established the following standards for its variable...

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 Standard variable overhead rate 5.30 DLHS $11.66 per DLH The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output 8,800 DLHS $ 96,000 1,500 units What is the variable overhead efficiency variance for the...

A manufacturing company that has only one product has established the following standards for its variable...

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 Standard variable overhead rate 5.20 DLHS $11.65 per DLH The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output 8,700 DLHs $95,990 1,600 units What is the variable overhead efficiency variance for the month?...
A manufacturing company that has only one product has established the following standards for its variable...

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 4.50 DLHs Standard variable overhead rate $ 11.52 per DLH The following data pertain to operations for the last month: Actual direct labor-hours 8,900 DLHs Actual total variable manufacturing overhead cost $ 95,920 Actual output 1,800 units What is the variable overhead rate variance for...
The following standards for variable manufacturing overhead have been established for a company that makes only...

The following standards for variable manufacturing overhead have been established for a company that makes only one hours per unit of output 5.8 hours Stan Standard variable overhead rate$12.20 per hour The following data pertain to operations for the last month: 2,575 hours Actual hours Actual total variable manufacturing overhead cost Actual output $32,035 150 units What is the variable overhead efficiency variance for the month?

The following standards for variable overhead have been established for a company that makes only one...

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 6.7 hours $ 13.50 per hour şu yo pou ou The following data pertain to operations for the last month: Actual hours Actual total variable overhead cost Actual output 9,600 hours $ 125, 220 1,420 units Required: a. What is the variable overhead rate variance for the month? b. What is the variable...
The following standards for variable manufacturing overhead have been established for a company that makes only...

The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 8.2 hours Standard variable overhead rate $ 14.60 per hour The following data pertain to operations for the last month: Actual hours 2,875 hours Actual total variable manufacturing overhead cost $ 42,715 Actual output 150 units What is the variable overhead efficiency variance for the month? Multiple Choice $24,757 U $740 U $24,017 U $17,958 F
The following standards for variable manufacturing overhead have been established for a company that makes only...

The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 7.2 hours Standard variable overhead rate $ 13.60 per hour The following data pertain to operations for the last month: Actual hours 2,750 hours Actual total variable manufacturing overhead cost $ 38,090 Actual output 250 units What is the variable overhead efficiency variance for the month? Multiple Choice $690 U $24,480 F $13,610 U $12,920 U

The following standards for variable manufacturing overhead have been established for a company that makes only...

The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output..... Standard variable overhead rate.. 5.6 hours $12.00 per hour The following data pertain to operations for the last month: Actual hours. Actual total variable manufacturing overhead cost Actual output.. 2,600 hours $31,330 400 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...

Homework Answers

Add Answer to:
A manufacturing company that has only one product has established the following standards for its variable...

Post as a guest

Earn Coins