Asked by Selia Bennett on May 13, 2024
Verified
The variable overhead rate variance for July is:
A) $213 F
B) $216 F
C) $216 U
D) $213 U
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the standard cost assigned to production, measured per unit.
- Comprehend and determine the variance in efficiency for variable overhead costs.
Verified Answer
DV
Desiree VarelaMay 18, 2024
Final Answer :
D
Explanation :
Variable overhead rate variance = AH × (AR − SR)
= 2,130 hours × ($6.10 per hour − $6.00 per hour)
= 2,130 hours × ($0.10 per hour)
= $213 U
Reference: CH09-Ref81
Geschke Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead.
= 2,130 hours × ($6.10 per hour − $6.00 per hour)
= 2,130 hours × ($0.10 per hour)
= $213 U
Reference: CH09-Ref81
Geschke Corporation, which produces commercial safes, has provided the following data: Supplies cost is an element of variable manufacturing overhead.
Learning Objectives
- Comprehend and determine the variance in efficiency for variable overhead costs.
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