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Insight Compeny's standard factory overhead rate is $3.86 per direct labor hour (DLH, calculated et 90% capacity 700 standerd DLHs. In December, the company opereted at 80% of capacity, or 622 standerd DLHS. Budgeted factory overhead at BO% of capacity is $3.060, of which $1,360 is fixed overhead. For December the ectual factory overhead cost was $4.200 700 actual DLHs, of which $1.3e0 was for fxed fectory overhead. Under a four-wey breakdown (decomposition) of the total overhead variance, what is the variable factory overhead spending variance for Insight Company for December? (Round your intermediate calculation to 2 decimal places.)

Insight Compeny's standard factory overhead rate is $3.86 per direct labor hour (DLH, calculated et 90% capacity 700 standerd DLHs. In December, the company opereted at 80% of capacity, or 622 standerd DLHS. Budgeted factory overhead at BO% of capacity is $3.060, of which $1,360 is fixed overhead. For December the ectual factory overhead cost was $4.200 700 actual DLHs, of which $1.3e0 was for fxed fectory overhead. Under a four-wey breakdown (decomposition) of the total overhead variance, what is the variable factory overhead spending variance for Insight Company for December? (Round your intermediate calculation to 2 decimal places.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
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Insight Compeny's standard factory overhead rate is $3.86 per direct labor hour (DLH), calculated et 90% capacity 700 standard DLHS. In December, the company opernted at 80% of capacity, or 622 standard DLHS. Budgeted factory overhead at B0% of capacity is $3.060, of which $1,360 is fixed overhead. For December the actunl factory overheed cost was $4.200 for 700 actual DLHs, of which $1.300 wes for fixed fectory oveihead. Under a four-way breakdown (decomposition) of the total overhead variance, what is the variable factory overhead spending variance for Insight Company for December? (Round your intermediate calculation to 2 decimal places.)
Transcribed Image Text:Insight Compeny's standard factory overhead rate is $3.86 per direct labor hour (DLH), calculated et 90% capacity 700 standard DLHS. In December, the company opernted at 80% of capacity, or 622 standard DLHS. Budgeted factory overhead at B0% of capacity is $3.060, of which $1,360 is fixed overhead. For December the actunl factory overheed cost was $4.200 for 700 actual DLHs, of which $1.300 wes for fixed fectory oveihead. Under a four-way breakdown (decomposition) of the total overhead variance, what is the variable factory overhead spending variance for Insight Company for December? (Round your intermediate calculation to 2 decimal places.)
$524 favorable $909 unfavorable $349 favorable $949 unfavorable $724 unfavorable
Transcribed Image Text:$524 favorable $909 unfavorable $349 favorable $949 unfavorable $724 unfavorable
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