E9-15 Calculating Variable Manufacturing Overhead Variances [LO 9-5] See Clear C

Question

E9-15 Calculating Variable Manufacturing Overhead Variances [LO 9-5]

See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear’s overhead for the month of December follows:

During December, See Clear had the following actual results:

Required:
Compute See Clear’s variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.)

Standard Quantity Standard Rate Standard Unit Cost Variable manufacturing overhead 0.1 machine hours per case $0.90 per machine hour $ 0.09

Explanation / Answer

Variable overhead rate variance = 58000-(64000*0.9)= 400 U Variable overhead efficiency variance = 0.9*(64000-600000*0.1)= 3600 U Underapplied variable overhead = 400+3600 = 4000 U

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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