Sade Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
The company has reported the following actual results for the product for December:
Required:
a. Compute the variable overhead rate variance for December.
b. Compute the variable overhead efficiency variance for December.

Question

Sade Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
  The company has reported the following actual results for the product for December:
  Required:
a. Compute the variable overhead rate variance for December.
b. Compute the variable overhead efficiency variance for December.

Quizplus · Accepted Answer

The Answer of Sade Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
  The company has reported the following actual results for the product for December:
  Required:
a. Compute the variable overhead rate variance for December.
b. Compute the variable overhead efficiency variance for December.

Sade Inc Has Provided the Following Data Concerning One of the the Products