Calcagno Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product B47W:

The following data pertain to the most recent month's operations during which 520 units of product B47W were made: Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

Question

Calcagno Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product B47W:

The following data pertain to the most recent month's operations during which 520 units of product B47W were made:  Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

Quizplus · Accepted Answer

The Answer of Calcagno Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product B47W:

The following data pertain to the most recent month's operations during which 520 units of product B47W were made:  Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

Calcagno Corporation's Variable Overhead Is Applied on the Basis of Direct