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Varvara68 [4.7K]
3 years ago
14

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

cks 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:
Business
1 answer:
Vika [28.1K]3 years ago
8 0

Answer:

Variable overhead efficiency variance= $135 favorable

Explanation:

Giving the following information:

Standard supplies cost $ 1.50 per machine-hour

Standard machine-hours per truck 2.9 machine-hours

Actual production of 3,800 trucks

Actual machine-hours 10,930 machine-hours

<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

Variable overhead efficiency variance= (2.9*3,800 - 10,930)*1.5

Variable overhead efficiency variance= (11,020 - 10,930)*1.5

Variable overhead efficiency variance= $135 favorable

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