Solution-Compute variable overhead spending and efficiency

Compute variable overhead spending and efficiency variance

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Reference no: EM131780034

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 year's 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.
direct labor hours = ___________________

2. Compute the variable overhead spending and efficiency variances.

Reference no: EM131780034

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Compute variable overhead spending and efficiency variance

Reference no: EM131780034

Reference no: EM131780034

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