Question

Calculator W oraw Classes Login - FAFSA on the Web Click to watch the Tell Me More Learning Objective 4b video and then answer the questions below. 1. Gamet Developers Inc., a manufacturing company, provides the following data: Standard variable overhead rate (SVOR) $4 per direct labor hour Actual variable overhead costs (AH) $900 Standard hours allowed per unit 0.20 hours Actual direct labor hours worked (AH) 120 hours Actual production 1,200 units What is the total variable overhead variance? a. $60 (unfavorable) b. $60 (favorable) c. $15 (unfavorable) d. $15 (favorable) 2. What is the equation to calculate variable overhead spending variance? a. Variable Overhead Spending Variance Actual variable Overhead - (Actual Direct Labor Hours x Standard Variable Overhead R b. Variable Overhead Spending Variance (Actual Direct Labor Hours - Standard Direct Labor Hours for Actual Production) Star Overhead Rate c. Variable Overhead Spending Variance Actual Variable Overhead - (Standard Direct Labor Hours for Actual Production Standar Overhead Rate) Standa (Actual Direct Labor Hours + Standard Direct Labor Hours for Actual Production d. Variable Overhead Spending Variance Previous Check My Work Save and submit Arsim All work saved 90 *

Answer 1

1. Total variable overhead variance = Actual overhead - (Standard hours allowed * Standard variable overhead rate)

= $900 - [(1,200*0.2) * $4]

= $900 - $960

= $60 Favorable

The answer is a.

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2. Variable overhead spending variance = Actual variable overhead - (Actual direct labor hours * Standard variable overhead rate per hour)

The answer is a.