Question
4 Cady Machine Shop used 15,000 machine hours during January. It takes 0.90 machine-hours to produceone unit; 15,000 units were produced during the month. Budgeted
4
Cady Machine Shop used 15,000 machine hours during January. It takes 0.90 machine-hours to produceone unit; 15,000 units were produced during the month. Budgeted production included 12,000 units,using 10,800 machine hours. Budgeted variable manufacturing overhead costs per machine-hour is$22.50.
What is the variable overhead efficiency variance for Cady?
| a. | $67,500 favourable |
| b. | $37,000 favourable |
| c. | $33,750 unfavourable |
| d. | $67,500 unfavourable |
| e. | $33,750 favourable |
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
8th Canadian Edition
134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736
