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Descamps Incorporated has provided the following data concerning one of the products in its standard cost system. The correct option for the variable overhead efficiency variance for the month is closest to 366F
Variable overhead efficiency variance
= (SLH - ALH) * SR
= (4200*0.20 - 780) * 6.10
= (840-780)*6.10
= 366 F
The main purpose of a standard cost system is to provide management with information on the control of operations. Standard costs are predetermined costs that provide a basis for more efficiently controlling costs.
Examples include rent payable, utilities payable, insurance payable, salaries payable to office staff, office supplies, etc.
Read more is $15 consistent with an hour, and the usually fixed fee is $ 100,000. Therefore, the entire hours required for generating one unit is 10 hours. find the standard cost of the company.
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Descamps Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Variable manufacturing overhead 0.20 hours $ 6.10 per hour The company has reported the following actual results for the product for July: Actual output 4,200 units Actual direct labor-hours 780 hours Actual variable overhead rate $ 6.20 per hour The variable overhead efficiency variance for the month is closest to:
A. $372F
B. $366F
C. $366U
D. $372U
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