Variable Cost Variances
The following data reflect the current month’s activity for Sills, Inc.:
Actual total direct labor |
$546,000 |
Actual hours worked |
26,000 |
Standard labor hours allowed for actual output (flexible budget) |
27,000 |
Direct labor price variance |
$19,500 U |
Actual variable overhead |
$132,600 |
Standard variable overhead rate per standard direct labor hour |
$5.25 |
Variable overhead is applied based on standard direct labor hours allowed.
Required
Compute the labor and variable overhead price and efficiency variances.