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Lena [83]
3 years ago
9

ThingOne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual

total overhead$80,510 Actual fixed overhead$32,000 Actual machine hours11,000 Standard hours for the units produced10,600 Standard variable overhead rate$4.60 What is the variable overhead efficiency variance
Business
1 answer:
frozen [14]3 years ago
7 0

Answer:

the variable overhead efficiency variance is $1,840 unfavorable

Explanation:

The computation of the variable overhead efficiency variance is shown below:

= Standard variable overhead rate × (standard hours - actual hours)

= $4.60 × (10,600 - 11,000)

= $1,840 unfavorable

Hence, the variable overhead efficiency variance is $1,840 unfavorable

As the standard hours would be less than the actual hours so it would be unfavorable variance

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For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

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