Determine Sunland's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs were under-or overapplied, and by how much. Variable-MOH price variance $ Variable-MOH efficiency variance $ Variable-MOH $

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Chapter6: Activity-based, Variable, And Absorption Costing
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Determine Sunland's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs
were under- or overapplied, and by how much.
Variable-MOH price variance
$
Variable-MOH efficiency variance $
Variable-MOH
$
Transcribed Image Text:Determine Sunland's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs were under- or overapplied, and by how much. Variable-MOH price variance $ Variable-MOH efficiency variance $ Variable-MOH $
Sunland Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and
DL usage and price expectations.
Direct materials
Direct labor
Variable-MOH
10 square yards per unit
1.2 DL hours per unit
1.2 DL hours per unit
@ $4/square yard
@ $17/DL hour
@ $3.00/DL hour
Throughout the year, Sunland used 3,596 DL hours in the process of making 3,100 tents. The company had originally planned to
produce and sell 2,800 tents. Its actual variable-MOH costs totaled $10,968 for the year.
Transcribed Image Text:Sunland Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH 10 square yards per unit 1.2 DL hours per unit 1.2 DL hours per unit @ $4/square yard @ $17/DL hour @ $3.00/DL hour Throughout the year, Sunland used 3,596 DL hours in the process of making 3,100 tents. The company had originally planned to produce and sell 2,800 tents. Its actual variable-MOH costs totaled $10,968 for the year.
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