Asked by Jusseth Hernandez on May 07, 2024
Verified
The variable overhead efficiency variance for June is:
A) $760 F
B) $760 U
C) $741 F
D) $741 U
Variable Overhead Efficiency Variance
The difference between the expected variable overhead costs based on standard costing and the actual variable overhead incurred, attributable to efficiency.
- Comprehend the theory and arithmetic involved in determining variable overhead rate and efficiency variances.
Verified Answer
FM
Felicia MassonMay 11, 2024
Final Answer :
B
Explanation :
SH = 3,500 units × 0.6 hours per unit = 2,100 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (2,290 hours − 2,100 hours)× $4.00 per hour
= (190 hours)× $4.00 per hour
= $760 U
Variable overhead efficiency variance = (AH - SH)× SR
= (2,290 hours − 2,100 hours)× $4.00 per hour
= (190 hours)× $4.00 per hour
= $760 U
Learning Objectives
- Comprehend the theory and arithmetic involved in determining variable overhead rate and efficiency variances.
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