Question

Exercise 6-21 Your answer is partially correct. Try again. The following information is available for Swifty's Hot Dogs: Actual production Budgeted production Standard direct labor hours Actual direct labor hours Standard variable overhead rate Actual variable overhead costs 11,620 packages 12,500 packages 1.52 direct labor hours per package 18,731 $3 per direct labor hour $47,743 Calculate the variable overhead spending and efficiency variances. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter o for the amounts.) Variable overhead spending variance $ 1069|| Unfavorable v Variable overhead efficiency variance $

Answer 1

Variable overhead spending variance = $ 5,244 Favorable

Variable overhead efficiency variance = $ 3,206 Unfavorable

Working

Variable Overhead Spending Variance
(	Standard Cost	-	Actual Cost	)
(	$         52,987.20	-	$           47,743.00	)
	5244.2
	Variance		$             5,244.20			Favourable-F

.

Variable Overhead Efficiency Variance
(	Standard Hours	-	Actual Hours	)	x	Standard Rate
(	17662.4	-	18731	)	x	$              3.00
	$         (3,205.80)
	Variance		$             3,2056			Unfavourable-U

.

Standard DATA for		11620	Units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Variable Overhead	( 1.52 Hour x 11620 Units)=17662.4 Hour	$                   3.00	$            52,987.20

.

Actual DATA for		11620	Units
	Quantity (AQ)	Rate (AR)	Actual Cost
Variable Overhead	18731	$            2.55	$          47,743.00