Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches
Are...
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches
Aretha Company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour $4.70
Actual variable overhead costs $335,750
Actual direct labor hours worked (AH) 69,200
Actual production in units 14,000
Standard hours (SH) allowed for actual units produced 70,000
Required:
1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable (F) or Unfavorable (U).
(1) (2) (3)
Spending
Efficiency
2. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number and select Favorable or Unfavorable.
$
3. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number and select Favorable or Unfavorable.
$
4. Calculate the total variable overhead variance. Enter amount as a positive number and select Favorable or Unfavorable.
$
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