Plesible Budgets and Seandard Cost Syseems pecify 0.1 dir pany uses standard cos

Question

Plesible Budgets and Seandard Cost Syseems pecify 0.1 dir pany uses standard costs for its manufacturing division. vear s specify o year, the static budget rec labrhours per unit of product. At the beginning of th or variable overhead costs included the following data: Production volume ,000 units Budgeted direct labor hours DLHr At the end of the year, actual data were as follows: Production volume 600 hours 000 units $15,200 Actual variable overhead costs What is the variable overhead efficiency variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) iains that are investm

Explanation / Answer

Variable overhead efficiency variance

= (Actual direct labor hours - Standard direct labor hours allowed) x Standard rate per direct labor hour

= [480 - (4,000 units x 0.1)] x ($14,000/600 hours)

= $1,866 Unfavroable

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