Deschamp Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product O28H: The following data pertain to the most recent month's operations during which 2,160 units of product O28H 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

Deschamp Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product O28H:  The following data pertain to the most recent month's operations during which 2,160 units of product O28H 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 Deschamp Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product O28H:  The following data pertain to the most recent month's operations during which 2,160 units of product O28H 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?

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