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Compute variable overhead spending variance

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Reference no: EM13509165

Order Up, Inc. provides order fulfillment services for e-commerce merchants. The company maintains warehouses that stock items carried by its clients. In the most recent month, 140,000 items were shipped to customers using 5,800 direct labor-hours. The company incurred a total of $15,950 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item. For the year, Order Up expects to incur 60,000 direct labor hours and $168,000 of variable overhead costs.

Required: Compute variable overhead spending variance and variable overhead efficiency variance.

 

Reference no: EM13509165

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