Company uses standard costing what is the variable overhead


Problem - Company uses standard costing.

Overhead information for last quarter of the year:

Actual overhead incurred:

Fixed $10,500

Variable $66,810

Budgeted fixed overhead $11,000

Variable overhead rate per direct labor hour $5

Standard hours allowed for actual production 13,100

Actual labor hours used 13,000

A. What is the variable overhead spending variance?

B. What is the variable overhead efficiency variance?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Company uses standard costing what is the variable overhead
Reference No:- TGS02539625

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)