Question

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

Answer 1

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

Step-by-step 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