Freytag Corporation's Variable Overhead Is Applied on the Basis of Direct

question 2

Essay

Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product N06C:
The following data pertain to the most recent month's operations during which 1,600 units of product N06C were made:
Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

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Definitions:

Frequency

The quantity of times a cyclic event happens in a given time period, typically referred to in situations involving waves or oscillations.

Nanometers

A unit of length in the metric system, equal to one billionth of a meter, commonly used to measure wavelengths of light and the size of biological and chemical structures at the molecular level.

Wavelength

The distance between successive crests of a wave, specifically in physics, the distance between identical points in adjacent cycles of a wave.

Orbital

A mathematical function describing the location and wave-like behavior of an electron or pair of electrons in an atom.