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stiks02 [169]
3 years ago
13

Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct

materials 4.60 grams $ 2.10 per gram Direct labor 0.60 hours $ 22.00 per hour Variable overhead 0.60 hours $ 3.10 per hour The company reported the following results concerning this product in July. Actual output 4,100 units Raw materials used in production 12,470 grams Actual direct labor-hours 2,280 hours Purchases of raw materials 13,200 grams Actual price of raw materials purchased $ 2.30 per gram Actual direct labor rate $ 12.50 per hour Actual variable overhead rate $ 3.20 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for July is:
Business
1 answer:
Sauron [17]3 years ago
8 0

Answer:

Variable overhead efficiency variance= $558 favorable

Explanation:

Giving the following information:

Variable overhead 0.60 hours $ 3.10 per hour

Actual output 4,100 units

Actual direct labor-hours 2,280 hours

<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (0.6*4,100 - 2,280)*3.10

Variable overhead efficiency variance= $558 favorable

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