Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Hours 15 minutes Standard Rate per Hour $15 per hour The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $21,987 in variable manufacturing overhead costs. During the current month, 4,923 direct labor hours were needed to manufacture 19,475 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead efficiency variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.

Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Hours 15 minutes Standard Rate per Hour $15 per hour The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $21,987 in variable manufacturing overhead costs. During the current month, 4,923 direct labor hours were needed to manufacture 19,475 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead efficiency variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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