Question

Bressman Inc. has provided the following data concerning one of the products in its standard cost system.

Answer 1

Answer:

$268 Favorable

Explanation:

Variable overhead variance can be computed by using the following formula,

Budgeted hours = 0.20/unit

Variable overhead efficiency variance

= Standard Overhead rate * (Actual Hours - Standard Hours)

= 6.7 * ( 1,820 - (9300*0.2))

Efficiency variance = $268 Favorable, as actual hours for actual activity are less than standard hours at actual activity.

Hope that helps.