The variable overhead rate variance for power is closest to:

A) $7,097 U
B) $7,097 F
C) $896 F
D) $7,993 U

Question

The variable overhead rate variance for power is closest to:A) $7,097 UB) $7,097 FC) $896 FD) $7,993 U

jorDann Wright · Accepted Answer

Final Answer : D, Explanation :  AH × AR = $94,989Variable overhead rate variance = (AH × AR)− (AH × SR)= ($94,989)− (62,140 hours × $1.40 per hour)= $94,989 − $86,996= $7,993 UReference: CH09-Ref72Irving Corporation makes a product with the following standards for direct labor and variable overhead:   In November the company's budgeted production was 5,300 units, but the actual production was 5,100 units.The company used 1,650 direct labor-hours to produce this output.The actual variable overhead cost was $7,590.The company applies variable overhead on the basis of direct labor-hours.

The variable overhead rate variance for power is closest to:

A) $7,097 U
B) $7,097 F
C) $896 F
D) $7,993 U

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