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

question 460

Essay

Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 8.4 direct labor-hours per unit of D80D. The standard variable overhead rate is $5.60 per direct labor-hour. During the most recent month, 800 units of product D80D were made and 6,800 direct labor-hours were worked.The actual variable overhead incurred was $41,140.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:

Anisole

An organic compound with the formula CH3OC6H5, consisting of a methoxy group (-OCH3) bonded to a phenyl group, used as a precursor in perfumes and pharmaceuticals.

Structure

The arrangement or organization of atoms within a molecule, determining its shape, properties, and reactivity.

Melting Point

The temperature at which a solid becomes a liquid at atmospheric pressure, indicative of the purity and molecular structure of substances.

Dichlorobenzene

An aromatic compound with the formula \(C_6H_4Cl_2\), existing in three isomeric forms, and used as a solvent, deodorant, and in the manufacture of other chemicals.