Robert Company, which applies overhead to production on the basis of machlne hou

Question

Robert Company, which applies overhead to production on the basis of machlne hours, reported the following data for the period just ended Actual unlts produced: 12,000 Actual varlable overhead Incurred: $69,700 Actual machlne hours worked 18,200 Standard varlable overhead cost per machine hour: $4.50 02:32:42 If Robert estimates 1.40 hours to manufacture a completed unit, the company's varlable-overhead spending varlance is IS: Multiple Choice $6.300 favorable. $6.300 unfavorable. $12 200 favorable $12,200 unfavorable. None of these.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Actual Units produced    12,000.00 Standard hours per unit              1.40 Standard hours for 12000 units = 12000*1.40    16,800.00 Actual Variable overhead rate = 69700/18200          3.8297 VO spending Variance = (SR-AR)AH VO spending Variance = (4.50 - 3.8297)18200 VO spending Variance = 12,200 F

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