In: Accounting
The following data reflect the current month’s activity for
Vickers Corporation.
Actual total direct labor | $ | 688,940 | |
Actual hours worked | 37,000 | ||
Standard labor-hours allowed for actual output (flexible budget) | 35,700 | ||
Direct labor price variance | $ | 14,060 | F |
Actual variable overhead | $ | 161,700 | |
Standard variable overhead rate per standard direct labor-hour | $ | 4.40 | |
Variable overhead is applied based on standard direct
labor-hours allowed.
Required:
Compute the labor and variable overhead price and efficiency variances.