E9-13 (Static) Calculating Variable Manufacturing Overhead Variances [LO 9-5]Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours, Information fromLLL's standard cost card follows:Variable manufacturingoverheadStandard StandardRateQuantity0.6$0.80Units produced and soldActual variable overheadActual direct labor hoursDuring August, LLL had the following actual results:25,000$ 9,49016,000StandardUnit Cost$0.48Required:Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead.(Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.and "None" for no effect (i.e., zero variance).)Variable overhead rate varianceVariable overhead efficiency varianceVariable overhead spending variance

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Description: E9-13 (Static) Calculating Variable Manufacturing Overhead Variances [LO 9-5]Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours, Information fromLLL's standard cost card follows:Variable

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E9-13 (Static) Calculating Variable Manufacturing Overhead Variances [LO 9-5] Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: Variable manufacturing overhead Rate Unit Cost Standard Standard Standard Quantity 0.6 $0.80 $0.48 During August, LLL had the following actual results: Units produced and sold Actual variable overhead Actual direct labor hours 25,000 $ 9,490 16,000 Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhear

E9-13 (Static) Calculating Variable Manufacturing Overhead Variances [LO 9-5] Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: Variable manufacturing overhead Rate Unit Cost Standard Standard Standard Quantity 0.6 $0.80 $0.48 During August, LLL had the following actual results: Units produced and sold Actual variable overhead Actual direct labor hours 25,000 $ 9,490 16,000 Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhear

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...

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Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: Variable manufacturing overhead Standard Standard Quantity Rate 0.6 $0.80 Units produced and sold Actual variable overhead Actual direct labor hours During August, LLL had the following actual results: $ Standard Unit Cost $0.48 26,300 9,590 17,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
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