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Sade Inc has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct-labor hours
Inputs -- Variable Manufacturing Overhead
Standard Quantity or Hours per Unit of Output -- .20 hours
Standard Price or Rate -- $7.00
The company has reported the following actual results for the product for December.
Actual Output = 5,300 units
Actual direct labor hours = 1,160 hours
Actual variable overhead rate = $6.80 per hour
REQUIRED:
Question a) compute the variable overhead rate variance for December
Question b) compute the variable overhead efficiency variance for December
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