Asked by Cassandra Matthews on Jun 11, 2024
Verified
The variable overhead rate variance for supplies is closest to:
A) $10,828 F
B) $10,947 U
C) $10,828 U
D) $10,947 F
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual amount of the allocation base used.
Supplies
Materials and items used in the daily operations of a business that do not directly become part of the final product.
- Gain an understanding of variable overhead variances and master the techniques to compute them.
Verified Answer
JQ
Jefrey QuirozJun 17, 2024
Final Answer :
A
Explanation :
AH × AR = $123,642
Variable overhead rate variance = (AH × AR)? (AH × SR)
= ($123,642)? (79,100 hours × $1.70 per hour)
= $123,642 ? $134,470
= $10,828 F
Variable overhead rate variance = (AH × AR)? (AH × SR)
= ($123,642)? (79,100 hours × $1.70 per hour)
= $123,642 ? $134,470
= $10,828 F
Learning Objectives
- Gain an understanding of variable overhead variances and master the techniques to compute them.
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