Question
Please show step by step how to solve. Grant Parker, manager of Denver Company, wants to compute the variable overhead efficiency variance for the year.
Please show step by step how to solve.
Grant Parker, manager of Denver Company, wants to compute the variable overhead efficiency variance for the year. He has the following details:
Variable overhead flexible budget variance (unfavorable) | $47,250 |
Budgeted input quantity allowed for actual output | 9,000 units |
Actual input quantity used of cost-allocation base used | 10,125 units |
Budgeted variable overhead cost per unit of cost-allocation base | $60 |
Actual variable overhead cost per unit of cost-allocation base | $58 |
What will be the variable overhead efficiency variance for the year? Favorable or unfavorable?
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