Homework Help is Here – Start Your Trial Now!
Business
Accounting
Variable overhead he company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours 0.7 hours 4,700 units 13,070 grams 3,060 hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate $ 3.70 per hour 13,800 grams $2.90 per gram $13.10 per hour $ 3.80 per hour he company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the

Variable overhead he company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours 0.7 hours 4,700 units 13,070 grams 3,060 hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate $ 3.70 per hour 13,800 grams $2.90 per gram $13.10 per hour $ 3.80 per hour he company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 12P: Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard...
See similar textbooks
icon
Related questions
Topic Video
Question
Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate The variable overhead efficiency variance for July is: Multiple Choice The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. о C Standard Quantity or Hours 5.2 grams 0.7 hours 0.7 hours $851 F $874 U $874 F $851 U Standard Price or Rate $2.70 per gram $28.00 per hour. $ 3.70 per hour 4,700 units 13,070 grams 3,060 hours 13,800 grams $2.90 per gram $ 13.10 per hour $ 3.80 per hour.
Transcribed Image Text:Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate The variable overhead efficiency variance for July is: Multiple Choice The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. о C Standard Quantity or Hours 5.2 grams 0.7 hours 0.7 hours $851 F $874 U $874 F $851 U Standard Price or Rate $2.70 per gram $28.00 per hour. $ 3.70 per hour 4,700 units 13,070 grams 3,060 hours 13,800 grams $2.90 per gram $ 13.10 per hour $ 3.80 per hour.
Expert Solution
Step 1

Variable overhead efficiency variance is based on the difference of standard hour and actual direct labor hours. This difference is multiplied by Standard rate of variable overhead to arrive at Variable overhead efficiency variance.

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS