Variable Overhead Variances for a Service Business E 11.
Design Architects, LLP, billed clients for 6,000 hours of design work for the
month. Actual variable overhead costs for the month were $315,000, and 6,250
hours were worked. At the beginning of the year, a variable overhead standard
of $50 per design hour had been developed based on a budget of 5,000 design
hours each month. Calculate Design Architects variable overhead spending and
efficiency variances for the month.
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