Unformatted text preview: Variable Overhead Variances , Service Company
Rostand Inc . operates a delivery service for over ?0 restaurants . The corporation has a fleet of vehicles and has invested in a
sophisticated , computerized communications system to coordinate it's deliveries . Rostand has gathered the following actual data
on last year's delivery operations :"
31, 000 direct labor hours @ $ 14.00
Actual variable overhead $ 157, 700
Rostand employs a standard costing system . During the year , a variable overhead rate of $ 5 . 10 per hour was used . The labor
standard requires O. BO hour per delivery .
1 . Compute the standard hours allowed For actual deliveries made last year .
30, 8:30| ~' direct labor hours
2. Compute the variable overhead spending and efficiency Variances . Enter amounts as positive numbers and select Favorable or
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- Winter '15
- Corporation, Following, Rostand