contestada

Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following data for its commercial bathtub production line during the month of​ March:
Standard DL hours per tub 5
Standard variable overhead rate per DL hour $ 6.00
Standard variable overhead cost per unit $ 30.00
Actual variable overhead costs $ 16,400
Actual DL hours 2,050
Actual variable overhead cost per machine hour $ 8.00
Actual tubs produced 1,500
1. What is the variable manufacturing overhead efficiency variance in​ March?

Respuesta :

hamzatauseef

Answer:

$32,700 Favorable

Explanation:

Variable Manufacturing overhead efficiency variance can be computed as follows,

VMOH Variance = Standard Overhead rate * (Actual Hours - Standard Hours)

VMOH Variance = 6.0 * (2050 - (1500 * 5))

Variance = $32,700 Favorable

This a favorable variance as budgeted per tub direct labor hours are more than they actually were at production level of 1500 tubs.

Hope that helps.

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE

Otras preguntas