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:

Qi

In traditional Chinese medicine, the vital life force or energy that flows through the body, believed to be essential for maintaining health and vitality.

Acupressure

Form of massage in which firm, gentle pressure is applied to the acupuncture points of the body.

Reflexology

A treatment based on massage of the feet to relieve symptoms in other parts of the body.

Horticultural Therapy

An adjunct therapy to occupational and physical therapy that has people view nature, visit a healing garden or a wander garden, or actually participate in gardening to decrease social isolation, foster interactions with others, stimulate the five senses, provide leisure activities, improve motor function, provide a sense of achievement, and improve self-esteem.