Gentile Corporation makes a product with the following standard costs: The company produced 6,100 units in May using 38,530 kilos of direct material and 4,600 direct labor-hours. During the month, the company purchased 40,870 kilos of the direct material at $7.30 per kilo. The actual direct labor rate was $18.90 per hour and the actual variable overhead rate was $6.60 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for May is: Solution variable overhead efficiency variance for May is: .

1. Gentile Corporation makes a product with the following standard costs:
The company produced 6,100 units in May using 38,530 kilos of direct material and 4,600 direct
labor-hours. During the month, the company purchased 40,870 kilos of the direct material at
$7.30 per kilo. The actual direct labor rate was $18.90 per hour and the actual variable overhead
rate was $6.60 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials
purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for May is:
Standard Quality or Hours Standard Price or Rate
Inputs
Direct materials 7.5 kilos $6.00 per kilo
Direct labor 0.9 hours $12.40 per hour
Variable overhead 0.9 hours $6.90 per hour
Solution
variable overhead efficiency variance for May is:
$6,141 F