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

question 114

Essay

Deschamp Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following variable overhead standards for product O28H: The following data pertain to the most recent month's operations during which 2,160 units of product O28H were made: 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:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Life Expectancy

The average period that a person is expected to live, which can vary significantly across different countries and communities.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Cigarette Habit

The cigarette habit refers to the regular consumption of cigarettes, often resulting in physical dependence on nicotine.