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lions [1.4K]
3 years ago
5

The following standards for variable manufacturing overhead have been established for a company that makes only one product: Sta

ndard hours per unit of output 5.2 hours Standard variable overhead rate $11.60 per hour The following data pertain to operations for the last month: Actual hours 2,500 hours Actual total variable manufacturing overhead cost $29,590 Actual output 150 units What is the variable overhead efficiency variance for the month?
Business
1 answer:
Aleks [24]3 years ago
8 0

Answer:

Variable overhead efficiency variance= $19,952 unfavorable

Explanation:

Giving the following information:

Standard hours per unit of output 5.2 hours

Standard variable overhead rate $11.60 per hour

Actual hours 2,500 hours

Actual output of 150 units

<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Standard quantity= 5.2*150= 780

Variable overhead efficiency variance= (780 - 2,500)*11.6

Variable overhead efficiency variance= $19,952 unfavorable

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