EX. 10.56 - Variable Overhead Variances Service Company...

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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 :" Deliveries made* 38, 500 Direct labor 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 . Required : 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 Unfavorable . A` Spending variance* 400 Favorable ~` Efficiency Variance* 612 Unfavorable *`...
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  • Winter '15
  • Corporation, Following, Rostand

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