Asked by Sierra Giles on May 06, 2024
Verified
The Maxit Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July:Actual variable manufacturing overhead cost incurred: $11,310Actual machine-hours worked: 1,600 hoursVariable overhead rate variance: $1,710 UnfavorableTotal variable overhead spending variance: $2,310 UnfavorableThe variable overhead efficiency variance for July is:
A) $600 Unfavorable
B) $540 Unfavorable
C) $540 Favorable
D) $600 Favorable
Standard Machine-hours
The predetermined amount of time that machines are expected to operate to meet production targets within a specific period.
Variable Overhead Efficiency Variance
The difference between the actual and the budgeted or standard cost of variable overheads based on the efficient usage of the business resources.
Total Variable Overhead Spending Variance
The variance between real variable overhead expenses and the anticipated expenses, which are determined using standard rates and the actual levels of production.
- Master the techniques for evaluating variable overhead efficiency variances.
Verified Answer
Learning Objectives
- Master the techniques for evaluating variable overhead efficiency variances.
Related questions
Valera Corporation Makes a Product with the Following Standards for ...
Geschke Corporation, Which Produces Commercial Safes, Has Provided the Following ...
Brummer Corporation Makes a Product Whose Variable Overhead Standards Are ...
The Maxit Corporation Has a Standard Costing System in Which ...
The Variable Overhead Efficiency Variance for the Month Is Closest ...