Gaillard computes its overhead rates using practical volume

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At the beginning of the year, Gaillard Company had the following standard cost sheet for one of its chemical products:

  • Direct Materials (5 lbs. @ $3.20) $16
  • Direct Labor (2 hrs. @ $18) $36
  • FOH (2 Hrs. @ $4.30) $8.6
  • VOH (2Hrs @ $0.90) $1.80

Standard Cost Per Unit $62.40

Gaillard computes its overhead rates using practical volume, which is 144,000 units. The actual results for the year are as follows a) Units produced: 143, 400 b) Direct Labor: 286,400 Hrs @ $18.10 c) FOH: $1,235,900 and d) VOH: $259,300

Compute the Variable Overhead Spending and Efficiency Variances.

Reference no: EM13595192

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