10.- Variable Overhead Variances, Service Company Rostand Inc. operates a delivery service for over 70...
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Accounting
10.-
Variable Overhead Variances, Service Company
Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last years delivery operations:
Deliveries made
38,600
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 0.80 hour per delivery.
Required:
1. Compute the standard hours allowed for actual deliveries made last year. fill in the blank 1 direct labor hours
2. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.
Spending variance
$fill in the blank 2
FavorableUnfavorable
Efficiency variance
$fill in the blank 4
Answer & Explanation
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