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What is the Cakewalk Ltd rate variance

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Reference no: EM132938614

Question - Cakewalk Ltd. delivers shoes in batches. The following information pertains to shipping dance shoes in June:

Static-budget Amounts Actual Amounts

Pairs of shoes shipped: 100,000 120,000

Batch size (number of pairs per pallet): 400 500

Packing hours per pallet: 0.50 0.40

Variable overhead cost per packing hour: $16 $15

Total shipping fixed overhead costs: $4,500 $5,300

Required - What is the Cakewalk Ltd. rate variance for variable shipping overhead costs?

Reference no: EM132938614

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