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QUESTION
Company uses standard costing. Overhead information for last quarter of the year: Actual overhead incurred:
Company uses standard costing.
Overhead information for last quarter of the year:
Actual overhead incurred:
Fixed $10,500
Variable $66,810
Budgeted fixed overhead $11,000
Variable overhead rate per direct labor hour $5
Standard hours allowed for actual production 13,100
Actual labor hours used 13,000
A. What is the variable overhead spending variance?
B. What is the variable overhead efficiency variance?
(Spending variance is $1,810 unfavorable)
