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3 years ago

Mulliner Company showed the following information for the year:

Business

1 answer:

Harrizon [31]3 years ago

6 0

Answer:

1. 60,000 hours

2. $210,000

3. $10,500 Unfavorable

Explanation:

1. Standard Hours = 3 per unit

Actual production units = 20,000

Standard Hours for actual production = Standard Hours × Actual production units

= 3 × 20,000

= 60,000 hours

2. Applied variable overhead = Standard hours × Standard Rate per hour

= 60,000 × $3.50

= $210,000

3. Total Variable overhead variance = Applied variable overhead - Actual variable overhead overhead

= $210,000 - $220,500

= $10,500 Unfavorable

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