Asked by Blake French on Jul 05, 2024
Verified
The variable overhead efficiency variance for April was:
A) $15,000 Unfavorable
B) $23,000 Unfavorable
C) $38,000 Favorable
D) $38,000 Unfavorable
Variable Overhead Efficiency Variance
A calculation used to measure the efficiency with which a firm uses its variable overhead resources, based on the difference between actual and expected usage.
Unfavorable
A term describing outcomes that are worse than expected or budgeted, often used in financial and operational analysis.
Favorable
A term used in financial analysis to indicate that actual performance is better than expected or budgeted performance.
- Compute and elucidate variances related to overhead, encompassing volume, efficiency, and budget discrepancies.
Verified Answer
MB
Megga BbeautyyJul 06, 2024
Final Answer :
A
Explanation :
SH = 80,000 units × 2.00 hours per unit = 160,000 hours
Variable overhead efficiency variance = (AH ? SH)× SR
= (165,000 hours ? 160,000 hours)× $3.00 per hour
= (5,000 hours)× $3.00 per hour
= $15,000 U
Variable overhead efficiency variance = (AH ? SH)× SR
= (165,000 hours ? 160,000 hours)× $3.00 per hour
= (5,000 hours)× $3.00 per hour
= $15,000 U
Learning Objectives
- Compute and elucidate variances related to overhead, encompassing volume, efficiency, and budget discrepancies.