8-1072
416.
The following labor standards have been established for a particular product:
Standard labor hours
per unit of output
2.8
hours
Standard labor rate
$11.50
per
hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked
6,900
hours
Actual total labor cost
$80,385
Actual output
2,300
units
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?
8-1073
417.
Shawl Corporation’s variable overhead is applied on the basis of direct labor-hours. The
standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E. The
standard variable overhead rate is $6.80 per direct labor-hour. During the most recent
month, 1,560 units of product F02E were made and 8,700 direct labor-hours were worked.
The actual variable overhead incurred was $52,635.
Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?
8-1074
418.
Vath Corporation, which makes landing gears, has provided the following data for a recent
month:
Budgeted production
7,600
gears
Standard machine-hours per gear
2.3
machine-hours
Budgeted supplies cost
$3.00
per machine-hour
Actual production
8,000
gears
Actual machine-hours
18,430
machine-hours
Actual supplies cost (total)
$52,029
Required:
Determine the rate and efficiency variances for the variable overhead item supplies and
indicate whether those variables are favorable or unfavorable. Show your work!
8-1075
419.
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:
Standard direct labor-hours
2.5
hours per unit of O28H
Standard variable overhead rate
$7.70
per hour
The following data pertain to the most recent month’s operations during which 2,160 units
of product O28H were made:
Actual direct labor-hours worked
5,200
Actual variable overhead incurred
$44,980
Required:
a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?
8-1076
8-1077
420.
The following standards for variable overhead have been established for a company that
makes only one product:
Standard hours per unit
of output
6.9
hours
Standard variable
overhead rate
$15.80
per
hour
The following data pertain to operations for the last month:
Actual hours
6,100
hours
Actual total variable overhead cost
$97,600
Actual output
800
units
Required:
a. What is the variable overhead rate variance for the month?
b. What is the variable overhead efficiency variance for the month?
8-1078
421.
Pearle Corporation makes automotive engines. For the most recent month, budgeted
production was 3,300 engines. The standard power cost is $9.20 per machine-hour. The
company’s standards indicate that each engine requires 2.1 machine-hours. Actual
production was 3,400 engines. Actual machine-hours were 7,160 machine-hours. Actual
power cost totaled $61,815.
Required:
Determine the rate and efficiency variances for the variable overhead item power cost
and indicate whether those variances are unfavorable or favorable. Show your work!
8-1079
422.
The following data have been provided by Leason Corporation:
Budgeted production
7,300
units
Standard machine-hours per unit
9.0
machine-hours
Standard lubricants
$1.60
per machine-hour
Standard supplies
$1.30
per machine-hour
Actual production
7,500
units
Actual machine-hours
67,570
machine-hours
Actual lubricants (total)
$100,973
Actual supplies (total)
$95,651
Required:
Compute the variable overhead rate variances for lubricants and for supplies. Indicate
whether each of the variances is favorable (F) or unfavorable (U). Show your work!
8-1080
8-1081
423.
The following data for March have been provided by Fickling Corporation, a producer of
precision drills for oil exploration:
Budgeted production
5,700
drills
Standard machine-hours per drill
1.8
machine-hours
Standard indirect labor
$1.30
per machine-hour
Standard power
$1.20
per machine-hour
Actual production
5,800
drills
Actual machine-hours
10,580
machine-hours
Actual indirect labor
$13,024
Actual power
$13,107
Required:
Compute the variable overhead rate variances for indirect labor and for power for March.
Indicate whether each of the variances is favorable (F) or unfavorable (U). Show your
work!
8-1082