Asked by Deonna Hershey-Kisses on May 07, 2024
Verified
The variable overhead efficiency variance for August is:
A) $520 U
B) $481 U
C) $481 F
D) $520 F
Variable Overhead Efficiency Variance
The difference between the actual variable overhead costs incurred and the expected costs based on efficient use of resources.
- Determine the efficiency variances of variable overhead costs.
Verified Answer
HH
Heidy HernandezMay 11, 2024
Final Answer :
A
Explanation :
SH = 7,900 units × 0.5 hours per unit = 3,950 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (4,080 hours − 3,950 hours)× $4.00 per hour
= (130 hours)× $4.00 per hour
= $520 U
Variable overhead efficiency variance = (AH - SH)× SR
= (4,080 hours − 3,950 hours)× $4.00 per hour
= (130 hours)× $4.00 per hour
= $520 U
Learning Objectives
- Determine the efficiency variances of variable overhead costs.