QUESTION 4 Not ompletePoints out of 15.00 Flg The management of Green Energy Man

Question

QUESTION 4 Not ompletePoints out of 15.00 Flg The management of Green Energy Manufacturing is analyzing variable overhead varlances for the fiscal period just ended.The fentle budgt alles to $176.000 in variable overhead but actual variable overhead was $100.000. In computing the overhead variances Greens management dscoered ta t had used 40.000 pounds of direct material, rather than the budgeted amount of 44000 pounds.(Pounds of dretmaterials ngvhead dther of variable overhead). The standard variable overhead rate per pound of direct material is $2.00 What is Green's variable overhead efficiency variance? Select one: O A. $16,000 (F) O B. $ 8,000 (U) C. $ 8,000 (F) O D. $24.000 (U) Check Previous page o)

Explanation / Answer

Variable overhead efficiency variance = (Standard hours-actual hours)standard rate

                                                      = ( 44000-40000)2

Variable overhead efficiency variance = 8000 F

so answer is c) $8000 (F)

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