A H B Inc Uses A Standard Cost System And Calculates Their Application Rates Using Direct Labour Hours This Year The C 1 (32.11 KiB) Viewed 36 times
A H B Inc Uses A Standard Cost System And Calculates Their Application Rates Using Direct Labour Hours This Year The C 2 (15.88 KiB) Viewed 36 times
a H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours. This year the company had the following standards: Standard direct labour hours per unit: 2 hours Variable overhead application rate: $4 per direct labour hour Fixed overhead application rate: $6 per direct labour hour The company also had the following actuals: Production: 16,000 units Variable overhead: $141,312 Fixed overhead: $203,136 Total direct labour hours: 36,800
What is the variable overhead spending variance? a) $5,888 favourable b) $13,312 favourable c) $13,312 unfavourable d) $5,888 unfavourable
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!