Hallow Company Uses Standard Costing A $\quad$ Calculate the Variable Overhead Rate

question 83

Essay

Hallow Company uses standard costing.Overhead is applied to products on the basis of standard direct labour hours for actual production.Data for Hallow follows: $\begin{array}{lr}\text { Standard direct labour hours allowed for actual output } & 110,000 \\\text { Actual direct labour hours } & 115,000 \\\text { Direct labour hours budgeted in the master budget } & 120,000 \\\text { Budgeted total variable overhead cost } & \$ 360,000 \\\text { Actual variable overhead cost } & \$ 328,000\end{array}$ A. $\quad$ Calculate the variable overhead rate.
B. $\quad$ Calculate the total variable overhead applied to production.
C. $\quad$ Calculate the variable overhead spending variance.
D. $\quad$ Calculate the variable overhead efficiency variance.
E. $\quad$ Calculate the total variable overhead variance.

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Definitions:

Insolvent Buyer

An individual or entity that cannot meet financial obligations or pay debts as they become due.

Reclaim Goods

The process by which a seller or creditor regains possession of goods from a buyer due to nonpayment or breach of contract.

Consequential Damages

Refers to indirect damages that arise not from a breach of contract itself but as a foreseeable result of the breach.

Defective Widgets

Products, specifically widgets, that fail to meet the required quality or functional standards, potentially leading to legal liability for manufacturers or sellers.