Chapter 8 Standard costs and variance analysis Copr., Goedl/…
Questions
Chаpter 8 Stаndаrd cоsts and variance analysis Cоpr., Gоedl/Strickland, 2021 Four Cats, Inc. uses a standard cost system. The company reported the following data. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Data regarding the company's standard cost and quantities are provided below. Standard quantity per unit Standard Price/Rate Direct materials 7.7 ounces $7.80 per ounce Direct labor 0.4 hours $38.70 per hour Variable manufacturing overhead 0.4 hours $6.10 per hour Below are the actual results for the most recent month of production. Actual results Units produced 7,750 units Raw material purchased and used 59,695 ounces for $429,804 Direct labor hours worked 2,610 hours Direct labor costs $105,966 Variable manufacturing overhead costs $14,877 Compute the Variable manufacturing overhead efficiency variance.