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Sagot :
Answer:
$9,911 Unfavorable
Explanation:
Calculation for What is the variable overhead rate variance for the month
First step is to calculate the Standard labor hours Using this formula
Standard labor hours = Actual output x Standard hours per unit of output
Let plug in the formula
Standard labor hours= 1500 x 5.30
Standard labor hours= 7,950
Now let calculate the Variable overhead efficiency variance using this formula
Variable overhead efficiency variance = Actual labor hours - Standard labor hours) x hourly rate for standard variable overhead
Let plug in the formula
Variable overhead efficiency variance= ( 8,800-7,950) x 11.66
Variable overhead efficiency variance=850×11.66
Variable overhead efficiency variance= $9,911 Unfavorable
Therefore the variable overhead rate variance for the month is $9,911 Unfavorable
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