The Following Standards for Variable Manufacturing Overhead Have Been Established

question 177

Essay

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$\begin{array}{lccc}\text {Standard hours per unit of output} &\text { \( 6.9 \) hours}\\\text {Standard variable overhead rate} &\text { \( \$ 15.80 \) per hour}\end{array}$
The following data pertain to operations for the last month: $\begin{array} { l r } \text { Actual hours } & 6,100 \text { hours } \\\text { Actual total variable overhead cost } & \$ 97,600 \\\text { Actual output } & 800 \text { units }\end{array}$

Required:
a)What was the variable overhead spending variance for the month?
b)What was the variable overhead efficiency variance for the month?

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Definitions:

Social Interactions

The processes by which individuals act and react in relation to others, involving communication, influence, and exchange between people in a social context.

Cooperation

Is the capacity to create a complex social life by establishing generally accepted ways of doing things and ideas about what is right and wrong.

Crisis Situations

Crisis situations refer to sudden, unpredictable, and potentially harmful events requiring immediate attention and action to prevent or mitigate damage.

Democratic Leadership

A leadership style characterized by the sharing of decision-making responsibilities among group members, promoting participation and facilitating consensus.