Question
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.
Standard hours per unit of output5.20machine-hoursStandard variable overhead rate$11.65per machine-hour
The following data pertain to operations for the last month:
Actual hours8,700machine-hoursActual total variable manufacturing overhead cost$95,990Actual output1,600units
What is the variable overhead efficiency variance for the month?
$2,412 U
$7,253 F
$4,427 U
$7,253 U
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started