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ID: 2427901 • Letter: U
Question
ugrad1 rm/user/users.html?operation-logged In#/learningplatform/quiz/stu rni Austin Brands Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) Production volume Budgeted variable overhead costs Budgeted direct labor hours 100 units 14,000 30 hours At the end ofthe year, actual data were as follows Production volume Actual variable overhead costs Actual direct labor hours 100 units 15,000 480 hours a: Minimized view A. 514,000 U B. 515,000 F C. $4,334 U [ Ver: 2.8.20 1 402 Feb 2016 11:07:47-1 5:28.09 PM NST web and WindowsExplanation / Answer
Variable OH Cost Variance = (Std Rate - Actual Rate) * Actual Units
= (Std Rate * Actual hours) - Actual OH
= (14000/630 *480) - 15000
= - 4333.33
= unfavourable $4,333
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