The Following Information Relates to Regency Manufacturing's Overhead Costs for the Month

question 61

Essay

The following information relates to Regency Manufacturing's overhead costs for the month:
$$\begin{array} { | l | l | } \hline \text { Static budget variable overhead } & \$ 14,200 \\\hline \text { Static budget fixed overhead } & \$ 5,600 \\\hline \text { Static budget direct labor hours } & 1,000 \text { hours } \\\hline \text { Static budget number of units } & 5,000 \text { units } \\\hline\end{array}$$ Regency allocates manufacturing overhead to production based on standard direct labor hours.
Regency reported the following actual results for last month: actual variable overhead,$14,500; actual fixed overhead,$5,400; actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the variable overhead cost variance.(Round the answer to the nearest dollar.)

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Definitions:

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Importance

The state or fact of being of great significance or value.

Temporal Context

refers to the time-related conditions or circumstances that surround a situation or event.

Problematic Behaviors

Actions or patterns that are harmful or interfere with achieving goals.