Question

Exercise 10-3 Variable Overhead Variances [LO10-3] Logistics Solutions provides order fulfillment services for dot.com mercha

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. Standard quantity of labor hours allowed = 190,000 items * 0.03 direct labor hours per item

= 5,700

2. Standard variable overhead cost allowed = 5,700 labor hours allowed * $3.55 per labor hour

= $20,235

3. Variable overhead spending variance = Actual overhead - Standard variable overhead cost allowed

= $29,050 - $20,235

= $8,815 Unfavorable

4. Variable overhead rate variance = Actual overhead - (Actual hours * Standard rate)

= $29,050 - (8,300 * 3.55)

= $415 Favorable

Variable overhead efficiency variance = (Actual hours * Standard rate) - Standard variable overhead cost allowed

= ($8,300 * 3.55) - $20,235

= $9,230 Unfavorable

Add a comment
Know the answer?
Add Answer to:
Exercise 10-3 Variable Overhead Variances [LO10-3] Logistics Solutions provides order fulfillment services for dot.com merchants. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT