Question: You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Lillian Vernon Corporation. As an initial step, you prepare a summary of some events that bear on overhead for the most recent period. the variable overhead flexible-budget variance was $5000 unfavorable. The standard variable-overhead price per order was $.06. The rate of ten orders per hour is regarded as standard productivity per clerk. The total overhead incurred was $203,200, of which $135,500 was fixed. There were no variances for fixed overhead. The variable overhead spending variance was $2,500 favorable.
Find the following:
1) Variable-overhead efficiency variance
2) Actual hours of input
3) Standard hours allowed for output achieved