Shoppers Pharmacy operates a home delivery service for more than 2,000 home-bound clients.Shoppers has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries.Shoppers has gathered the following data on last year's operations:
Shoppers uses a standard costing system.During the year,the following variable overhead rate was used: $8.25 per delivery hour.The labour standard requires 0.80 hour per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.
$\begin{array}{ll}
\text { Deliveries made: } & 22,000 \
\text { Direct labour: } & 15,500 \text { delivery hours at } \$ 8 \text { per } \
& \text { hour } \
\text { Actual variable overhead: } & \$ 150,000
\end{array}$

Question

Shoppers Pharmacy operates a home delivery service for more than 2,000 home-bound clients.Shoppers has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries.Shoppers has gathered the following data on last year's operations:
Shoppers uses a standard costing system.During the year,the following variable overhead rate was used: $8.25 per delivery hour.The labour standard requires 0.80 hour per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.
 $\begin{array}{ll}
\text { Deliveries made: } & 22,000 \
\text { Direct labour: } & 15,500 \text { delivery hours at } \$ 8 \text { per } \
& \text { hour } \
\text { Actual variable overhead: } & \$ 150,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Shoppers Pharmacy operates a home delivery service for more than 2,000 home-bound clients.Shoppers has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its deliveries.Shoppers has gathered the following data on last year's operations:
Shoppers uses a standard costing system.During the year,the following variable overhead rate was used: $8.25 per delivery hour.The labour standard requires 0.80 hour per delivery.
Compute the variable overhead spending variance and the variable overhead efficiency variance.
 $\begin{array}{ll}
\text { Deliveries made: } & 22,000 \
\text { Direct labour: } & 15,500 \text { delivery hours at } \$ 8 \text { per } \
& \text { hour } \
\text { Actual variable overhead: } & \$ 150,000
\end{array}$

Shoppers Pharmacy Operates a Home Delivery Service for More Than