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

question 65

Essay

Stelluti Corporation's variable overhead is applied on the basis of direct labor-hours.The standard cost card for product H67F specifies 7.8 direct labor-hours per unit of H67F.The standard variable overhead rate is $6.50 per direct labor-hour.During the most recent month,400 units of product H67F were made and 2,900 direct labor-hours were worked.
The actual variable overhead incurred was $20,155.
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:

Concordant Rates

In genetics, the likelihood of both members of a pair (especially twins) to either both exhibit or not exhibit a trait or disorder.

Heritability

Heritability is a measure of how much of the variation in a trait among individuals within a population can be attributed to genetic differences.

Concordance

The agreement or harmony between treatments, behaviors, or opinions among individuals or in data, often used in genetics and medicine to describe the similarity in illness or traits.

Hereditary Trait

A feature or characteristic passed from one generation to another through genes.