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Rostand Inc operates a delivery service for over 70 restaurants The corporation has a fleet of vehicles and has invested in a sophisticated computerized communications system to coordinate its

Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last year’s delivery operations:

 

Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0.80 hour per delivery.

Variable Overhead Variances, Service Company Refer to the information for Rostand Inc. above. Required:

1. Compute the standard hours allowed for actual deliveries made last year.

2. Compute the variable overhead spending and efficiency variances.

Jun 27 2020 View more View Less

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