Asked by Drake Stancil on Mar 10, 2024
Verified
The variable overhead efficiency variance for July is:
A) $380 F
B) $399 U
C) $380 U
D) $399 F
Variable Overhead Efficiency Variance
The difference between actual variable overhead based on the hours worked and the standard variable overhead for the same activity level.
July
The month that is positioned seventh in the Gregorian calendar year.
- Understand how to calculate variable overhead efficiency variance.
- Comprehend the defining factors of favorable (F) versus unfavorable (U) variances.
Verified Answer
TN
Taylor NicoleMar 10, 2024
Final Answer :
A
Explanation :
SH = 3,000 units × 0.7 hours per unit = 2,100 hours
Variable overhead efficiency variance = (AH - SH)× SR
= (1,910 hours − 2,100 hours)× $2.00 per hour
= (−190 hours)× $2.00 per hour
= $380 F
Variable overhead efficiency variance = (AH - SH)× SR
= (1,910 hours − 2,100 hours)× $2.00 per hour
= (−190 hours)× $2.00 per hour
= $380 F
Learning Objectives
- Understand how to calculate variable overhead efficiency variance.
- Comprehend the defining factors of favorable (F) versus unfavorable (U) variances.