Lamp Light Limited
(LLL) manufactures lampshades. It applies variable overhead on the
basis of direct labor hours. Information from LLL’s standard cost
card follows:
Standard Quantity | Standard Rate | Standard Unit Cost | |
Variable manufacturing overhead | 0.6 | $0.80 | $0.48 |
During August, LLL had the following actual results:
Units produced and sold | 24,600 | |
Actual variable overhead | $ | 9,450 |
Actual direct labor hours | 15,600 | |
Required:
Compute LLL’s variable overhead rate variance, variable overhead
efficiency variance, and over- or underapplied variable overhead.
(Do not round intermediate calculations. Indicate the
effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero
variance).)
Variable Overhead Rate Variance | ||
Variable Overhead Efficiency Variance | ||
Variable Overhead Spending Variance |
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