Beverly Company has determined a standard variable overhead rate of \$3.10 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,250 actual direct labor hours in the production of 2,600 units. The company has also determined that its actual variable overhead rate is \$2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead.

Answers

Answer 1
Answer:

Answer:

Variable overhead rate variance = \$ 875 favorable

Variable overhead efficiency variance = \$ 4,185 favorable

Variable overhead cost variance = \$5,060 Favorable

Explanation:

Standard hours = 1 hr x 2600 units = 2600 hours

Standard rate = \$3.10

Actual hours = 1,250 hours

Actual rate = \$2.40

Variable overhead rate variance =  ( Standard Rate - Actual Rate ) x Actual Hrs

=  ( \$ 3.10 - \$2.40 ) x 1250 Hrs

= \$0.7 x 1250

=\$ 875 favorable

Variable overhead efficiency variance = (Standard hours - Actual hours) x Standard Rate

= (2600 - 1250 ) x \$ 3.10

= \$ 4,185 favorable

Variable overhead spending variance = Variable overhead rate variance +  Variable overhead efficiency variance

= \$875 + \$4,185

= \$ 5,060 favorable

Variable overhead cost variance = Standard cost - Actual Cost

= (2600 X 3.10) - (1250 X 2.40) = 8,060 - 3000

= \$5,060 Favorable

Related Questions

Bryan Houlberg expects his C corporation to generate a profit of \$200,000. What is Bryan's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?

Answers

Answer:

Explanation:

Corporate level tax on \$200,000 is \$61,250

Cash(After Corporate tax)=

Individual tax on \$138,750(15%)=

Hence, net after tax cashflow :

Explain what a literature review is.​

Answers

It is a paper that presents the current knowledge including substantive findings.

Scott turner has a bond with 10 years to maturity, a face value of \$1,000, an 8% interest rate, and a market price of \$800. what is the yield-to-maturity on this bond?

Answers

The yield to maturity, YTM, is the total return you could get from the bond if you keep the bond until it matures.

To solve:
Yield to maturity = {(\$1,000 x 0.08) + [(\$1,000 - \$800/10]}/[(\$800 + \$1,000)/2]
Yield to maturity = 11.11%

Hardy Company has current assets of \$95,000, current liabilities of \$100,000, long-term assets of \$180,000 and long-term liabilities of \$80,000. Hardy Company's working capital and its current ratio are: A. -\$5,000 and .95:1. B. \$5,000 and .95:1. C. -\$5,000 and 1.95:1. D. \$85,000 and .95:1.

Answers

Answer:

A. -\$5,000 and .95:1

Explanation:

Working capital = Current Assets - Current Liabilities

Provided current assets = \$95,000

Current Liabilities = \$100,000

Working capital = \$95,000 - \$100,000 = - \$5,000

Current Ratio =

Therefore, Current Ratio =

Here working capital is negative \$5,000

Current Ratio = 0.95 : 1

Final Answer

A. -\$5,000 and .95:1

Tell me tree critical risk that organization are likely to face in determination of requirement

Answers

i do not what your talking about

The difference between the small business owner and the entrepreneur is that the entrepreneur:_________ a) assumes the risk of the business manages
b) the business is responsible for the profits of the business
c) is accurately described by all of the above files taxes for the business

Answers

Answer:

Option A

Explanation:

The difference between the small business owner and the entrepreneur is that the entrepreneur "assumes the risk of the business manages" or option A. A entrepreneur is a person who manages and runs a business or businesses taking on more risks as the financial advisor so if we are talking differences of a business owner and a entrepreneur, a entrepreneur understands and takes on the risk of managing the business or businesses while a business owner manages one business not knowing the risk of managing one.

Hope this helps.