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Question - The following standards for the variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output 7.0 hours
Standard variable overhead rate $11.35 per hour
The following data pertain to operations for the last month:
Actual hours 7,500 hours
Actual total variable overhead cost $87,000
Actual output 1,000 units
Required - What is the variable overhead efficiency variance for the month?
What is the total period cost for the month under variable costing approach? What is the total period cost for the month under absorption costing approach?
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Adam Chemicals Ltd processes a number of chemical compounds used in producing industrial cleaning products.
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