Solution-Variable overhead spending variance for the month

Variable overhead spending variance for the month

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Reference no: EM13519151

Deschamp Corporation's variable manufacturing overhead is applied on the basis of direct labor-hours. The company has established the following variable manufacturing overhead standards for product O28H:

Standard direct labor-hours	2.5 hours per unit of O28H
Standard variable manufacturing overhead rate	$7.70 per hour

The following data pertain to the most recent month's operations during which 2,160 units of product O28H were made:

Actual direct labor-hours worked	5,200
Actual variable manufacturing overhead incurred	$44,980

Required:

a. What was the variable overhead spending variance for the month?

b. What was the variable overhead efficiency variance for the month?

Reference no: EM13519151

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Variable overhead spending variance for the month

Reference no: EM13519151

Reference no: EM13519151

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