Question

pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 155,000 items were shipped to customers using 6,000 direct labor-hours. The company incurred a total of $17,400 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.00 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 155,000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 155,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of labor-hours allowed 2. Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rate variance ....Variable overhead.efficiency.variance....

Answer 1

3 Per Hr 0.04 Hours 6200 Hours 155000 Helmets 6000 Hrs 2.90 Per Hr Data Srandard Rate SR Standard Hours per Unit Standards Hours Required I SH Actual Output Actual Quanity Used AH Actula Rate AH Answers Standrad Quanity of Labour Hours Standard Varaible cost allowed Varaible OH spending Variance ((18600-17400) Varaible Oh Rate araince (SR-AR)* AH =(3-2.9)*6000 Varaible overhead Efficiency Varaiance (SH-AH)*SR=(6000-6200)*3 62000.04*155000 18600 6200*3 12001 600 F 600

Data Srandard Rate Standard Hours per Unit Standards Hours Required Actual Output Actual Quanity Used Actula Rate 7 Per Hr 0.20 Hours 800 Hours 4000 Meals 750 Hours 8.00 Per Hr AH AH Answers 800 0.20*4000 5600 800*7 400U Standrad Quanity of Labour Hours Standard Labor cost allowed Labor spending Variance ((5600-6000) Labor Rate araince (SR-AR)* AH =(7-8)*750 Labor Efficiency Varaiance (SH-AH) *SR=(800-750*7 750 U 350 F