Asked by Elizabeth Inyang on Jul 05, 2024
Verified
The variable overhead rate variance for November is:
A) $612 U
B) $660 U
C) $660 F
D) $612 F
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected overhead based on standard costs.
November
The eleventh month of the Gregorian calendar, following October and preceding December.
- Understand the concept of variable overhead variances and how to calculate them.
Verified Answer
NK
Nazeli KhachatryanJul 08, 2024
Final Answer :
C
Explanation :
AH × AR = $7,590
Variable overhead rate variance = (AH × AR)? (AH × SR)
= ($7,590)? (1,650 hours × $5.00 per hour)
= $7,590 ? $8,250
= $660 F
Reference: CH09-Ref73
Termeer Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August:
Variable overhead rate variance = (AH × AR)? (AH × SR)
= ($7,590)? (1,650 hours × $5.00 per hour)
= $7,590 ? $8,250
= $660 F
Reference: CH09-Ref73
Termeer Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August:
Learning Objectives
- Understand the concept of variable overhead variances and how to calculate them.
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