Exercise 11-11 At the start of 2018, Steering Express Company determined its standard labor cost to...

Exercise 11-11

At the start of 2018, Steering Express Company determined its standard labor cost to be 2.60 hours per unit at $13.00 per hour. The budget for variable overhead was $9 per unit, and budgeted fixed overhead was $15,000 for the year. Expected annual production was 6,000 units. During 2018, the actual cost of labor was $15 per hour. Steering Express produced 5,000 units requiring 12,400 direct labor hours. Actual overhead for the year was $54,940.

Calculate labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Labor Rate Variance	$	FavorableNeither Unfavorable nor FavorableUnfavorable
Labor Efficiency Variance	$	FavorableUnfavorableNeither Unfavorable nor Favorable
Controllable Overhead Variance	$	FavorableNeither Unfavorable nor FavorableUnfavorable
Overhead Volume Variance	$	FavorableNeither Unfavorable nor FavorableUnfavorable

Expert Solution

ekkarill92 answered 2 years ago

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