Question
1. Mynarc Corporation produces fertilizer and distributes the product by using his tanker trucks. Mynarc uses budgeted fleet hours to allocate variable manufacturing overhead. The
1.
Mynarc Corporation produces fertilizer and distributes the product by using his tanker trucks. Mynarc uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:
Budgeted output units 700 truckloads
Budgeted fleet hours 440 hours
Budgeted variable manufacturing overhead costs for 700 loads
$ 14700
Actual output units produced and delivered 620 truckloads
Actual fleet hours 426 hours
Actual variable manufacturing overhead costs $17,490
The variable overhead efficiency variance is (closest to)
Select one:
a. $2000 U
b. $502 U
c. $1300 F
d. $1212 U
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