Question:
Variable Cost Variances
The records of Simon Company show the following for February:
|
Standard labor-hours allowed per unit of output
|
1.5
|
|
Standard variable overhead rate per
|
|
|
standard direct labor-hour
|
$30
|
|
Good units produced
|
60,000
|
|
Actual direct labor-hours worked
|
92,000
|
|
Actual total direct labor
|
$1,975,000
|
|
Direct labor efficiency variance
|
$40,000 U
|
|
Actual variable overhead
|
$2,560,000
|
Required
Compute the direct labor and variable overhead price and efficiency variances.