Asked by Daniel Juarez on Apr 27, 2024
Verified
The variable overhead efficiency variance for July is:
A) $183 F
B) $180 U
C) $180 F
D) $183 U
Variable Overhead Efficiency Variance
The difference between actual and expected (or budgeted) variable overhead costs based on the actual level of production or activity.
July
The seventh month of the year in the Gregorian calendar, commonly associated with the height of summer in the Northern Hemisphere.
- Understand and calculate variable overhead efficiency variance.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
SH = 5,400 units × 0.4 hours per unit = 2,160 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (2,130 hours − 2,160 hours)× $6.00 per hour
= (−30 hours)× $6.00 per hour
= $180 F
Variable overhead efficiency variance = (AH - SH)× SR
= (2,130 hours − 2,160 hours)× $6.00 per hour
= (−30 hours)× $6.00 per hour
= $180 F
Learning Objectives
- Understand and calculate variable overhead efficiency variance.
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