Balladares Inc.has a standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.The standard for variable manufacturing overhead is 0.10 hours at $6.30 per hour.The company has reported the following actual results for the product for May: Required:
a.Compute the variable overhead rate variance for May.
b.Compute the variable overhead efficiency variance for May.

Question

Balladares Inc.has a standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.The standard for variable manufacturing overhead is 0.10 hours at $6.30 per hour.The company has reported the following actual results for the product for May:  Required:
a.Compute the variable overhead rate variance for May.
b.Compute the variable overhead efficiency variance for May.

Quizplus · Accepted Answer

The Answer of Balladares Inc.has a standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours.The standard for variable manufacturing overhead is 0.10 hours at $6.30 per hour.The company has reported the following actual results for the product for May:  Required:
a.Compute the variable overhead rate variance for May.
b.Compute the variable overhead efficiency variance for May.