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Ilya [14]
3 years ago
9

The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Budgeted production 3,400

trucks Standard machine-hours per truck 2.9 machine-hours Standard supplies cost $ 1.50 per machine-hour Actual production 3,800 trucks Actual machine-hours 10,930 machine-hours Actual supplies cost (total) $ 17,496 ​ Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies cost is: Question 9 options: A) $966 U B) $135 F C) $966 F D) $135 U
Business
1 answer:
zloy xaker [14]3 years ago
8 0

Answer:

B) $135 F

Explanation:

The computation of the variable overhead efficiency variance for supplies cost is given below:

= (Actual hours - Standard hours) × Standard Rate

= (10,930 hours - 3,800 × 2.9 hours) × $1.50 per hour

= (-90 hours) × $1.50 per hour

= $135 favorable

Hence, the variable overhead efficiency variance for supplies cost is $135 favorable

Therefore the option b is correct

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