Determine the total flexible budget variable overhead cost, Accounting Basics

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Determine the total flexible budget variable overhead cost

Problem

Strauss Company established a predetermined variable overhead cost rate at $10.50 per direct labor hour. The actual variable overhead cost rate was $9 60 per hour. The planned level of labor activity was 76,000 hours of labor. The company actually used 80.000 hours of labor. Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U).

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Accounting Basics: Determine the total flexible budget variable overhead cost

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