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Bad White [126]
3 years ago
10

Actual production 11,620 packages Budgeted production 12,500 packages Standard direct labor hours 1.52 direct labor hours per pa

ckage Actual direct labor hours 18,731 Standard variable overhead rate $3 per direct labor hour Actual variable overhead costs $47,743. Calculate the variable overhead spending and efficiency variances.
Business
1 answer:
Alona [7]3 years ago
5 0

Answer:

8,450 Favorable ; 3,206 Unfavorable

Explanation:

Variable overhead spending variance:

= (Standard rate - Actual rate) × Actual hours

=  ($3 × 18,731) - $47,743

= 8,450 Favorable

Variable overhead efficiency variance:

= (Standard hour -  Actual hour)  × Standard rate

= [(11,620 × 1.52) -  18,731] × $3

= (-1,068.6)  ×  $3

= 3,206  Unfavorable

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