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Hallow Company Uses Standard Costing A \quad Calculate the Variable Overhead Rate

Question 130

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Hallow Company uses standard costing.Overhead is applied to products on the basis of standard direct labour hours for actual production.Data for Hallow follows:  Standard direct labour hours allowed for actual output 110,000 Actual direct labour hours 115,000 Direct labour hours budgeted in the master budget 120,000 Budgeted total variable overhead cost $360,000 Actual variable overhead cost $328,000\begin{array}{lr}\text { Standard direct labour hours allowed for actual output } & 110,000 \\\text { Actual direct labour hours } & 115,000 \\\text { Direct labour hours budgeted in the master budget } & 120,000 \\\text { Budgeted total variable overhead cost } & \$ 360,000 \\\text { Actual variable overhead cost } & \$ 328,000\end{array} A. \quad Calculate the variable overhead rate.
B. \quad Calculate the total variable overhead applied to production.
C. \quad Calculate the variable overhead spending variance.
D. \quad Calculate the variable overhead efficiency variance.
E. \quad Calculate the total variable overhead variance.

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