10.- Variable Overhead Variances, Service Company Rostand Inc. operates a delivery service for over 70...
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10.- Variable Overhead Variances, Service Company
Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last years delivery operations:
Deliveries made 38,600 Direct labor 31,000 direct labor hours @ $14.00 Actual variable overhead $157,700
Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0.80 hour per delivery.
Required:
1. Compute the standard hours allowed for actual deliveries made last year. fill in the blank 1 direct labor hours
2. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.
Spending variance $fill in the blank 2 FavorableUnfavorable Efficiency variance $fill in the blank 4
Variable Overhead Variances, Service Company
Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last years delivery operations:
| Deliveries made | 38,600 | ||
| Direct labor | 31,000 | direct labor hours @ $14.00 | |
| Actual variable overhead | $157,700 |
Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0.80 hour per delivery.
Required:
1. Compute the standard hours allowed for actual deliveries made last year. fill in the blank 1 direct labor hours
2. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.
| Spending variance | $fill in the blank 2 | FavorableUnfavorable | |
| Efficiency variance | $fill in the blank 4 |
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