Question
Buis Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 2,000 gears Standard machine-hours per gear 5.5 machine-hours
Buis Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 2,000 gears Standard machine-hours per gear 5.5 machine-hours Budgeted supplies cost $6.10 per machine-hour Actual production 1,400 gears Actual machine-hours 8,500 machine-hours Actual supplies cost (total) $49,702 Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Variable overhead rate variance $ (Click to select)FUNone Variable overhead efficiency variance $ (Click to select)FUNone
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