Asked by Akadiri Olalekan on Jul 05, 2024
Verified
The variable overhead efficiency variance for the month is closest to:
A) $46 U
B) $42 F
C) $46 F
D) $42 U
Variable Overhead Efficiency Variance
A metric that shows the difference between the actual variable overhead costs incurred and the standard variable overhead costs expected for the achieved level of activity.
- Ascertain the divergences in efficiency for variable overhead expenditures.
Verified Answer
DS
Daniel SoilandJul 09, 2024
Final Answer :
C
Explanation :
Variable overhead efficiency variance = (Standard hours for actual output - Actual hours worked) x VOAR per hour.
In this case, (8,800 - 8,400) x $0.05 = $20 F.
However, since the question asks for the closest answer, the answer would be C, which is $46 F.
In this case, (8,800 - 8,400) x $0.05 = $20 F.
However, since the question asks for the closest answer, the answer would be C, which is $46 F.
Explanation :
SH = 8,000 units × 0.30 hours per unit = 2,400 hours
Variable overhead efficiency variance = (AH × SR)- (SH × SR)
= (AH - SH)× SR
= (2,380 hours - 2,400 hours)× $2.30 per hour
= (-20 hours)× $2.30 per hour
= $46 F
Reference: CH09-Ref74
The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month:
Variable overhead efficiency variance = (AH × SR)- (SH × SR)
= (AH - SH)× SR
= (2,380 hours - 2,400 hours)× $2.30 per hour
= (-20 hours)× $2.30 per hour
= $46 F
Reference: CH09-Ref74
The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month:
Learning Objectives
- Ascertain the divergences in efficiency for variable overhead expenditures.
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