Asked by EZEKIEL LABRADOR on May 13, 2024
Verified
The variable overhead rate variance for January is:
A) $91 F
B) $87 F
C) $91 U
D) $87 U
January
The first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.
- Comprehend the principles behind variable overhead variances and the methodology for their calculation.
Verified Answer
AF
Aidil FitriMay 17, 2024
Final Answer :
A
Explanation :
Variable overhead rate variance = AH × (AR − SR)
= 910 hours × ($7.90 per hour − $8.00 per hour)
= 910 hours × (−$0.10 per hour)
= $91 F
Reference: CH09-Ref78
Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups.The following data pertain to one month's operations:
• Variable manufacturing overhead cost incurred: $70,000
• Total variable manufacturing overhead variance: $4,550 Favorable
• Standard machine setups allowed for actual production: 3,550
• Actual machine setups incurred: 3,500
= 910 hours × ($7.90 per hour − $8.00 per hour)
= 910 hours × (−$0.10 per hour)
= $91 F
Reference: CH09-Ref78
Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups.The following data pertain to one month's operations:
• Variable manufacturing overhead cost incurred: $70,000
• Total variable manufacturing overhead variance: $4,550 Favorable
• Standard machine setups allowed for actual production: 3,550
• Actual machine setups incurred: 3,500
Learning Objectives
- Comprehend the principles behind variable overhead variances and the methodology for their calculation.
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