Judd Company uses standard costs for its manufacturing division. Standards speof

Question

Judd Company uses standard costs for its manufacturing division. Standards speofy 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the folowing data 6,100 unts $13,500 630 hours Production volume Budgeted variable overhead costs Budgeted direct labor hours At the end of the year, actual data were as follows Production volume Actual variable overhead costs Actaal direct labor hours 4,100 unts $15,400 490 hours What is the variable overhead cost variance? (Round any intermediate cakculations to the nearest cent, and your final answer to the nearest dolar.) O A. OB. OC. O D. $13,500 $15,400 F $4,000 U $6.300 F

Explanation / Answer

Standard Data Production Volume 6100 units Budgeter Variable Overhead Cost $13,500 Budgted DL Hrs 630 hrs Variabe Overhead Per Hr 21.42857 [$13500/630] DL Hrs per unit 0.1 Actual Data Production Volume 4100 units Actual Variable Overhead Cost $15,400 Actual DL Hrs 490 hrs Variabe Overhead Per Hr 31.42857 [15400/490] Standard Variable Overhead Rate 21.42857 ? Actual Variable Overhead Rate -31.4286 Difference Per Hour      (10.00) × Actual Labor Hours 490 Variable Overhead Cost Variance -4900 Answer is b) 4900 U

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