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:
Transmission Division
A specialized segment within a company that focuses on the development, production, and distribution of transmission systems for vehicles.
Customer Service Department
The division of a company focused on addressing customer inquiries, complaints, and service requests.
Operating Divisions
Operating divisions are distinct sectors within a company that focus on different products or markets, each potentially with its own management structure.
Fixed Costs
Financial obligations like rent, salaries, and insurance that remain steady, irrespective of the levels of sales or production achieved.
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