Variable Overhead Variances Assume that the best cost driver that Sony has for v

Question

Variable Overhead Variances Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6,200,000, which was related to 600,000 machine hours. Do not round until your final answers. Round your answers to the nearest dollar. (a) Determine the variable overhead spending variance. (b) Determine the variable overhead efficiency variance

Explanation / Answer

B Variable Overhead Spending/Rate Variance AHx (AR-SR) 600000*(10.333333-10.344828) -6897 F Variable Overhead Efficiency Variance (AH-SH)*SR 10.344828*(600000-580000) 206897 U As the total variance has to be (6200000-6000000) 200000 U Due to rounding off the answer can be +1 or -1

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.