Variable Manuf. Overhead is utilized on the idea of direct labor hours. The next information can be found for October:
3750 models of compound have been produced in the course of the month.
There have been no starting direct supplies stock
The ending direct supplies stock was 2000 ounces
Direct supplies bought: 12000 ounces for $225000
Direct labor hours labored: 5600 hours at a price of $67200
Variable Manufacturing Overhead prices incurred amounted to $18200
Variable manufacturing overhead utilized to merchandise: $18375 The variable overhead spending variance for October is: