Solution-Estimate variable overhead efficiency variance

Estimate variable overhead efficiency variance

Reference no: EM132548994

Universal Parcel provides parcel delivery services to many merchants. The company maintains warehouses that store and distribute items carried by all the different merchants. In the most recent month, 12,000 orders were shipped to customers using $50,000 of direct labor and 2,500 direct labor hours. The company incurred a total of $20,000 in variable overhead costs. According to the company's standards, 0.2 direct labor-hours are required to fulfill an order at a rate of $20.00 per hour. The variable overhead rate is 45% of direct labor dollars.

Required:

Question 1: Compute variable overhead spending variance and a variable overhead efficiency variance.

Reference no: EM132548994

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Estimate variable overhead efficiency variance

Reference no: EM132548994

Reference no: EM132548994

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