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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?
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