A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses machine-hours as its measure of activity. The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? Select one: a. $8,842 U b. $1,013 F c. $8,843 F d. $8,730 U

Question

Business

Emely Baker

20 December, 12:34

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses machine-hours as its measure of activity. The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month? Select one: a. $8,842 U b. $1,013 F c. $8,843 F d. $8,730 U

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Edward · Answer 1

Variable overhead efficiency variance = (Standard Quantity - Actual Quantity) * Standard rate

Explanation:

We weren't provided with enough information to calculate the variable overhead efficiency variance. But, I will provide the formula.

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance = (Standard Quantity - Actual Quantity) * Standard rate

Standard quantity = number of units produced*standard machine-hours