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 output | 4.00 | machine-hours |
| Standard variable overhead rate | $11.35 | per machine-hour |
| The following data pertain to operations for the last month: |
| Actual hours | 8,700 | machine-hours |
| Actual total variable manufacturing overhead cost | $95,860 | |
| Actual output | 2,100 | units |
| What is the variable overhead efficiency variance for the month? |
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Auditing And Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
12th Edition
1264100671, 978-1264100675
