A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 5.30 DLHs Standard variable overhead rate $ 11.66 per DLH The following data pertain to operations for the last month: Actual direct labor-hours 8800 DLHs Actual total variable manufacturing overhead cost $ 96,000 Actual output 1500 units What is the variable overhead rate variance for the month

$9,911 Unfavorable

Explanation:

Calculation for What is the variable overhead rate variance for the month

First step is to calculate the Standard labor hours Using this formula

Standard labor hours = Actual output x Standard hours per unit of output

Let plug in the formula

Standard labor hours= 1500 x 5.30

Standard labor hours= 7,950

Now let calculate the Variable overhead efficiency variance using this formula

Variable overhead efficiency variance = Actual labor hours - Standard labor hours) x hourly rate for standard variable overhead

Let plug in the formula

Variable overhead efficiency variance= ( 8,800-7,950) x 11.66

Variable overhead efficiency variance=850×11.66

Variable overhead efficiency variance= $9,911 Unfavorable

Therefore the variable overhead rate variance for the month is $9,911 Unfavorable

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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