Balladares Inc. has a standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard for variable manufacturing overhead is 0.10 hours at $6.30 per hour. The company has reported the following actual results for the product for May:
Required:
a. Compute the variable overhead rate variance for May.
b. Compute the variable overhead efficiency variance for May.
Definitions:
Aggregate Demand
All-encompassing demand for goods and services in an economy, analyzed at one price level throughout an allotted time frame.
Aggregate Supply
The entirety of goods and services that economic entities intend to market within a particular period in an economic environment.
Expected Price Level
The anticipated average of prices for all goods and services in an economy over a future period.
Labor Contracts
Agreements between employers and employees or unions that define terms of employment, salaries, benefits, and working conditions.
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