Compute the labor and variable overhead price


The following data reflect the current month's activity for Sills, Inc.:

Actual total direct labor $546,000

Actual hours worked 26,000

Standard labor-hours allowed for actual output (flexible budget) 27,000

Direct labor price variance $19,500U

Actual variable overhead $132,600

Standard variable overhead rate per standard direct labor-hour $5.25

Variable overhead is applied based on standard direct labor-hours allowed.

Required:

Compute the labor and variable overhead price and efficiency variances.

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Accounting Basics: Compute the labor and variable overhead price
Reference No:- TGS047575

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