Ask Question
15 April, 09:14

Relevant information for Product A follows: Actual variable overhead cost per hour $8.00 Standard variable overhead cost per hour $7.50 Actual hours 4,500 Standard hours 5,000 What was the variable overhead spending variance for Product A?

+2
Answers (1)
  1. 15 April, 09:21
    0
    variable overhead spending variance = $2,250

    Explanation:

    given data

    Actual variable overhead cost per hour = $8.00

    Standard variable overhead cost per hour = $7.50

    Actual hours = 4,500

    Standard hours = 5,000

    to find out

    variable overhead spending variance

    solution

    we know Actual hours and Application rate

    so Total actual will be here = Actual hours * Application rate ... 1

    Total actual = 4,500 * $8

    Total actual = $36000

    and

    Total actual Standard will be = Standard variable * Actual hours ... 2

    Total actual for Standard will be = 4,500 * $7.50

    Total actual for Standard = $33750

    so

    variable overhead spending variance = Total actual - Total actual for Standard ... 3

    variable overhead spending variance = $36000 - $33750

    variable overhead spending variance = $2,250
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Relevant information for Product A follows: Actual variable overhead cost per hour $8.00 Standard variable overhead cost per hour $7.50 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers