The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 8.0 hours
Standard variable overhead rate $11.55 per hour
The following data pertain to operations for the last month:
Actual hours. 7,000 hours
Actual total variable overhead cost $79,100
Actual output 600 units
What is the variable overhead spending variance for the month?
a. $23,660 U
b. $1,750 F
c. $24,860 U
d. $1,200 U
The following materials standards have been established for a particular product:
Standard quantity per unit of output 3.2 meters
Standard price.. $13.40 per meter
The following data pertain to operations concerning the product for the last month:
Actual materials purchased. 4,600 meters
Actual cost of materials purchased. $59,800
Actual materials used in production 4,400 meters
Actual output. 1,300 units
What is the materials price variance for the month?
a. $1,840 U
b. $1,760 U
c. $1,760 F
d. $1,840 F