A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent period, it actually used $76 of variable overhead per unit produced. During this same period, the company planned to produce 500 units but actually produced 540 units. What is the variable overhead spending variance? Solution 540 units × ($76 var. OH per unit - $78 std. var. OH per unit) = $1,080 favorable variable overhead spending variance 540 units $76 var. 540 units' $78 std. OH per unit var. OH per unit $42,120 $41,040 $1,080 favorable

A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent period, it actually used $76 of variable overhead per unit produced. During this same period, the company planned to produce 500 units but actually produced 540 units. What is the variable overhead spending variance? Solution 540 units × ($76 var. OH per unit - $78 std. var. OH per unit) = $1,080 favorable variable overhead spending variance 540 units $76 var. 540 units' $78 std. OH per unit var. OH per unit $42,120 $41,040 $1,080 favorable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11EA: A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent...

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