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

question 158

Essay

Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 6.3 direct labor-hours per unit of D80D. The standard variable overhead rate is $5.80 per direct labor-hour. During the most recent month, 1,000 units of product D80D were made and 6,400 direct labor-hours were worked.The actual variable overhead incurred was $40,920.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:

Environmental Opportunities

External factors in the business environment that an organization can exploit to its advantage, including technological advancements, regulatory changes, and market trends.

Internal Demands

The requirements or needs within an organization that can influence its operations, such as workforce capabilities, technology needs, and financial resources.

Coordinated Means

A strategy or approach involving the organized and integrated efforts of multiple entities or processes to achieve a specific goal.

Goals and Objectives

Targets and specific outcomes that an organization aims to achieve within a specified timeframe.