Solution-Compute the variable overhead efficiency variance

Compute the variable overhead efficiency variance

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Reference no: EM13876780

Four-Variance Analysis Use the following data given for Marilyn, Inc. In addition, the company has determined that actual variable overhead cost in April was $21,980.

Actual total cost for direct labor	$86,800
Total direct labor hours worked	14,000
Total standard labor hours for the output in April	15,000
Direct labor rate variance-unfavorable	$2,800
Actual total overhead cost	$32,000
Budgeted fixed overhead cost	$9,000
Practical capacity, in hours	12,000
Total overhead application rate per standard direct labor hour	$2.25

Required: Use the model presented in Exhibit to Compute the following variances for April:

1. Variable overhead efficiency variance.

2. Variable overhead spending variance.

3. Fixed overhead spending (budget) variance.

4. Production-volume variance.

Reference no: EM13876780

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Compute the variable overhead efficiency variance

Reference no: EM13876780

Reference no: EM13876780

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