Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C:
The following data pertain to the most recent month's operations during which 1,800 units of product N06C were made:
Required: a. What was the variable overhead rate variance for the month?b. What was the variable overhead efficiency variance for the month?

Question

Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C:
  The following data pertain to the most recent month's operations during which 1,800 units of product N06C were made:
  Required: a. What was the variable overhead rate variance for the month?b. What was the variable overhead efficiency variance for the month?

Quizplus · Accepted Answer

The Answer of Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C:
  The following data pertain to the most recent month's operations during which 1,800 units of product N06C were made:
  Required: a. What was the variable overhead rate variance for the month?b. What was the variable overhead efficiency variance for the month?

Freytag Corporation's Variable Overhead Is Applied on the Basis of Direct