The following data for November have been provided by Hunn Corporation, a producer of precision drills...

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The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration: B

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Answer 1

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Ans.	Variable overhead Rate variance = (Standard overhead rate * Actual machine hours) - Actual variable overhead

	Indirect labor	($9.50 * 36,050) - $345,062
		$342,475 - $345,062
		-$2,587	(or $2,587 unfavorable)

	Power	($3.10 * 36,050) - $110,460
		$111,755 - $110,460
		$1,295	Favorable

	*If the standard cost, rate and hours are higher than the actual it means the variance is favorable.
	*If the standard cost, rate and hours are lower than the actual it means the variance is unfavorable.

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Answer 2

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