A manufacturing company that has only one product has established the following
ID: 2377138 • Letter: A
Question
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on machine-hours.
The following data pertain to operations for the last month:
What is the variable overhead efficiency variance for the month?
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on machine-hours.
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on machine-hours. The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? $7,105 U $6,989 F $6,989 U $1,104 U
Explanation / Answer
std. hours = 4.6 x 1200 = 5520
Variable overhead efficiency variance = SR (AH - SH)
= $12.25 (6100-5520)
= 7,105 U
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