The following data have been provided by Furr Corporation: Indirect labor and power are both elements of variable manufacturing overhead.
The variable overhead rate variance for indirect labor is closest to:
A) $32,854 F
B) $32,854 U
C) $37,398 F
D) $4,544 F

Question

The following data have been provided by Furr Corporation:  Indirect labor and power are both elements of variable manufacturing overhead.
The variable overhead rate variance for indirect labor is closest to:
A) $32,854 F 
B) $32,854 U 
C) $37,398 F 
D) $4,544 F

Quizplus · Accepted Answer

AH × AR = $408,340
Variable overhead rate variance = (AH × AR) − (AH × SR)
= ($408,340) − (62,140 hours × $7.10 per hour)
= $408,340 − $441,194
= $32,854 F

The Following Data Have Been Provided by Furr Corporation